U.S. Overnight Forex Brief-Trading The NZD/USD
Shain Vernier • 2 min read
As the midpoint of the U.S. trading day draws near, it is time to begin looking toward the horizon for opportunity. This week’s economic calendar is relatively sparse, but there are a few items set to take place in the coming hours that are worthy of note.
Highlights of the report schedule for the next 24 hours:
U.S., Consumer Credit
API Crude Oil Stocks
China, Trade Balance
Canada, Housing Situation
There are many secondary metrics also due out, but none with market-moving potential. Nonetheless, it is a good idea to account for risk as their findings are released.
The headliner of tomorrow’s U.S. session will be the Reserve Bank of New Zealand’s (RBNZ) announcement on interest rates. Experts are calling for the rates to be held steady at 1.75%, staying the economic course.
NZD/USD, Daily Chart
In a similar fashion as the AUD/USD, there is downside potential for the Kiwi. While I don’t expect any surprises from the RBNZ, it is best to be ready for anything.
Resistance(1): 38% retracement of the current wave, .6965
Resistance(2): 20 Day EMA, .6965
Resistance(3): Bollinger Band, .6993
Macro Support(1): Yearly Double Bottom, .6817
Overview: The NZD/USD is trading very near 2017’s lows in a compressional fashion. The long-term trend has been extremely bearish, lending credence to another test of the double bottom at .6817.
Price is clearly in a consolidation phase between .6817 and the 38% retracement of the current wave (.6965). Technically, the downtrend has not yet been compromised and a long-term reversal is suspect.
Tomorrow’s RBNZ announcements have the potential to move this market considerably. The timing of the release will be around 3:00 PM EST, so we will have a chance to observe and diagnose price action in-depth ahead of the announcements.
Until then, trade smart and check out some of the active positions on the live signals page for trading ideas facing a broad spectrum of products.