New Zealand dollar has given us a great setup. I expect price to drop to the 0.6710 zone. My stops are tight as always at 0.6808. Always use proper money management.
Similar fundamental reasons underlie my bearish bias on the Kiwi. The bidirectional monetary policy impacting rate differentials being the most meaningful.
Further, technically, one would expect some material levels within the next handle, as evidenced by my red support line which roughly marks out the neckline of a head and shoulders top. Finally, with the MACD...
NZD$ Technical analysis - Remain bearish below 0.70 - 0.69tp1 0.68tp2 on a rate cut (Aug 10th):
Key level close:
1. On the daily and weekly we closed at the strongest pivot point of recent times at 0.70 - this is very bearish as historically this is the strongest level (lower than post brexit).
MA:
1. We trade below the 4wk and 3m MA - this is a bearish...
The Govenor of the RBNZ is speaking in 16 hours time - there could be significant up/ downside volatility in Kiwi - as we have seen after the past 3wks where the RBNZ have gone through the full hawk-dove cycle in their inferences/ rhetoric.
We had RBNZ Spencer's comments on house inflation back on the 7th of July which wrote off an RBNZ OCR cut - sending kiwi$ to...
June FOMC Minutes Highlights:
- FOMC Minutes: Fed Officials Divided on Rate Path Amid Uncertain Economic Outlook
-FOMC Minutes: Members Said Prudent to Wait for More Labor Market Data, Brexit Vote Before Raising Rates
-FOMC Minutes: Prior to Brexit Vote, Staff Saw Uncertainty Holding Down Investment in U.K.
-FOMC Minutes: Members Judged It Appropriate to...
Also as additional technicals to support the short NZD$ view:
1. On the daily, H1 and weekly NU currently Trades (and at 0.73) close/ at to its +2 standard deviation lines, these are highly resistive.
- Assuming NU trades mean reverting +2SD means there is a 95% chance of a price reversal/ 95% of all prices should be below the +2SD channel lines (e.g. NU...
