THE NZD INDEX CHART.



The Chart above is the Current NZD Daily Chart.The price is 1.4578 at the close of daily chart Friday January 28,2014 at a very strong Resistance after a pullback to to re-test the new high that formed the Resistance. From the chart when NZD Index price hit and reacted from the daily Resistance line it formed a Bearish Pinbar. The Bearish Pinbar indicates that NZD index is weak as price was unable to breakout from the daily Resistance line.
The reason I choose to write on this topic is for traders to understated the trend direction of all NZD Base and Counter pairs and to take good advantage of it as the market opens this week Monday March 3, 2014.


THE IMPORTANT OF THE NZD CHART ABOVE

The NZD daily chart above is very important for any trader that want to trade the NZD Base pairs and NZD Counter Pairs.The Chart tells us that NZD index is very weak when the market open this week Monday March 3, 2014. since the price is unable to breakout from the daily Resistance. it means that all NZD Base pairs will move in a bearish direction while the NZD Counter pairs will move in a bullish direction. The NZD Base and Counter pairs are as follow;

The NZD Base pairs
  • NZDUSD
  • NZDCAD,
  • NZDCHF
  • NZDJPY
The NZD Counter pairs
  • AUDNZD
  • EURNZD
  • GBPNZD

TRADE APPLICATIONS OF NZD BASE PAIRS

The NZD Index chart above shows that NZD is weak as such we look out for bearish set up in all NZD Base pairs .
Let us zoom to each of the Base pairs to look out for trade set up as market closed Friday February 28, 2014.



NZDUSD DAILY CHART





The NZDUSD Daily Chart above is one of the pairs of the NZD index were NZD is the Base currency . Since NZD is the Base we have to look out for bearish set up. When you look at the chart clearly you will observed that as at Friday February 28,2014 when the market came to a close,price hit the daily chart of NZDUSD reacted to form a Bearish Pinbar set up as a result of heavy rejection at the daily Resistance. The above Pure Price Action is an indication that NZD is weak.


NZDCAD DAILY CHART




NZDCAD is another pair of the NZD ,were NZD is the Base currency as such we will look out for only bearish setup since the Base currency is NZD.
When you take a critical look at the NZDCAD Daily Chart you will observe that as the market closed on Friday February 28,2014 ,the Price hit and reacted from the daily Resistance line to form a Bearish Pinbar indicating that the pair is bearish based on the analysis we derived from the NZD index . What states that NZD Base pairs will form a bearish set up. If the price should trend very well the price will hit the daily Trendline.



NZDCHF DAILY CHART





NZDCHF is another pair from the NZD family were NZD is the Base currency and from my explanation we look out for only bearish set up since NZD is weak.On Friday February 28,2014 from the chart, price hit the daily Resistance and reacted after a heavy rejection to for Bearish Outside Bar. The bearish set up indicates that the NZD index is actually weak.




NZDJPY DAILY CHART





NZDJPY is another family of NZD currency were NZD is the base currency and since NZD index is weak we look out for only bearish set up in all the NZD pairs. Now looking at the chart of NZDJPY above, you will observed that on Friday February 28,2014 as the market came to a close in daily chart, price hit the daily Resistance then reacted to form a Bearish Pinbar confirming the weakness of NZD index.



TRADE APPLICATIONS IN NZD COUNTER PAIRS

The NZD Index chart above shows that NZD is weak as such we will only look out for Bullish set up in NZD Counter pairs .
Let us zoom to each of the Counter pairs to look out for trade set up as the market closed Friday February 28, 2014. The NZD counter pairs includes the following; AUDNZD, EURNZD and GBPNZD.



AUDNZD DAILY CHART





AUDNZD is one of the NZD family were NZD is the Counter currency. From the explanation of the NZD index, that all the NZD counter pairs will exhibit Bullish trend as such we look out for only bullish set up in all the NZD counter pairs.
Looking at the AUDNZD pair from the chart above, we will observe that that at the close of the market Friday February 28, 2014, price is resting at the Daily support but price did not indicate any Bullish reversal candle pattern. But there is every indication that the price will experience a bullish moves when the market open Monday March 3,2014.If you also look at the AUD index you will also observe that it is very weak.With this development the pair may tend to range if AUD index remain bearish.



EURNZD DAILY CHART





EURNZD,is also another pair were NZD formed the Counter Currency as such we concentrate on the bullish set up.
From the daily chart above, price hit the daily support then reacted to form Bullish Pinbar as the market came to a close on Friday February 28, 2014. The set up is an indication to prove that NZD is weak.




GBPNZD DAILY CHART





GBPNZD is the last pair that has NZD as the Counter pair.At the close of Friday February 28, 2014, price hit the daily Trendline then reacted to form a Bullish Pinbar as a sign of bullish trend

CONCLUSION

Currency index will help traders to understand trend directions
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