NZD/USD Scalping Range Setup (July 3, 2013)

NZD/USD has been moving sideways on its 1-hour time frame, as the pair found support around the .7720 level and resistance near .7830. The pair is currently moving closer to the bottom of the range and getting ready to test the support level.

There are no major reports due from New Zealand today, which suggests that NZD/USD could be more dependent on US data. For today, the US will print its ISM non-manufacturing PMI report and possibly show a climb from 53.7 to 54.3. However, if the report disappoints or fails to impress, the dollar could lose ground.

Stochastic is already in the oversold region, suggesting that the pair could be ready to bounce soon. Bear in mind that most US traders will be off tomorrow, as it is the Fourth of July holiday, so profit taking could take place around nearby inflection points.

By Kate Curtis from Trader’s Way