Possible trade set-up for NZD cash rate release.

NZD/USD monetary policy and cash rate to come out 8 pm GMT.

Interest rate is expected to go up .25 basis points and a good possibility of .50 basis points. Traders can set themselves up to take advantage of unexpected announcements by adding a buy stop or a sell stop on either side of the price.

The support and resistance lines coming up are constricting leading to market consolidation and we a expect a spike in the price in either direction in the near future. This is supported by the squeezing Bollinger Band. We may receive that spike with the market event coming up. Note the stochastic RSI tells us to that the price is currently oversold and is a buy signal.

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