New Zealand Dollar: NZD/USD (NZD=X) Climb Vs. The US Dollar
In line with BK Asset Management’s FX forecasts, the Euro (EUR), Australian and New Zealand Dollars (AUD, NZD) all rose against the US Dollar (USD) during Tuesday’s session amid Fed Chair Jerome Powell’s testimony on US monetary policy and economic outlook.
EUR/USD gained 0.28% over the course of Tuesday and at the time of writing was seen to be trading at $1.13942, up marginally from the session open.
AUD/USD gained 0.22% to graze the $0.72 level before relinquishing gains in early Wednesday trading. The cross was last seen at $0.71709, down 0.16% from the daily open.
NZDUSD gains were less pronounced with the FX pair edging a marginal 0.04% higher on Tuesday. Wednesday’s session saw the cross give up these meagre gains, dipping by 0.1% to trade at $0.68791.
Powell’s testimony held little in the way of surprise thus far with the Federal Reserve Chairman reaffirming the central bank’s approach to rates will be data-dependent, reactive to economic and financial conditions, keeping a cap on rate hike expectations near-term.
For the risk-sensitive AUD and NZD, flaring regional tension between India and Pakistan may have limited gains and could weigh on the Antipodeans should bilateral aggression escalate.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 0.69.
The projected lower bound is: 0.67.
The projected closing price is: 0.68.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 77.4713. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 51.53. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 72 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 56. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX NZD= closed down -0.005 at 0.684. Volume was 18% below average (neutral) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume___
0.689 0.690 0.683 0.684 39,898
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 0.69 0.68 0.67
Volatility: 10 10 11
Volume: 44,392 44,866 50,717
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX NZD= is currently 1.3% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of NZD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on NZD= and have had this outlook for the last 23 periods.
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