NZD/USD breaking up for good - Forex News by FX Leaders

NZD/USD breaking up for good

Posted Thursday, June 9, 2016 by
Skerdian Meta • 1 min read

NZD/USD has been banging its head to the 200 smooth moving average (MA) on the daily chart twice last month and it finally managed to break above it. It is a technical thing as well as a fundamental one and you know, it´s scary how often those two align with each other on the higher timeframe charts. As you can see on the daily chart below the price reached the 200 MA hours before the Royal Bank of New Zealand (RBNZ) delivered their monthly statement and interest rate decision. 

That´s because the forex traders get all worked up before a major fundamental event such as a central bank meeting and close their trades at a technical level or indicator such as the 200 MA in this case. Anyway, about 45% of the market was expecting a rate cut but the RBNZ didn´t cut the interest rates and the RBNZ governor Wheeler diminished the hopes for a future rate cut, at least in the short term. The NZD took full advantage of it and it´s now about 150 pips higher and finally above the 200 MA on the daily chart. That has to be considered as a breakout by forex standards. 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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