New Zealand Dollar: NZD/USD (NZD=X) direction likely to be determined by trader reaction to the short-term 50% level at .6687
The New Zealand Dollar continues to feel pressure from a Reserve Bank of New Zealand report that showed it is at a “very early stage” in refreshing its “unconventional monetary policy strategy.”
Traders are also awaiting the European Central Bank’s latest monetary policy decision on Thursday at 11:45 GMT and ECB President Mario Draghi’s press conference at 12:30 GMT. The ECB is widely expected to announce further stimulus measures to combat stalling growth in the Euro Zone. Meanwhile, the U.S. Federal Reserve is expected to cut U.S. interest rates by at least 25-basis points on July 31.
The RBNZ cut its official cash rate in May to a record low at 1.5 percent. With the backdrop of lower global rates, investors believe the central bank’s benchmark rate will hit 1.0 percent by year-end.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 0.67.
The projected upper bound is: 0.68.
The projected lower bound is: 0.66.
The projected closing price is: 0.67.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black 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 7.7170. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 2 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 50.19. 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 buy 45 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 -17. This is not a topping or bottoming area. The last signal was a sell 2 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX NZD= closed down -0.003 at 0.668. Volume was 32% below average (neutral) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
0.670 0.671 0.668 0.668 25,462
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.67 0.66 0.67
Volatility: 9 9 10
Volume: 32,328 36,084 43,087
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 0.7% below 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 25 periods.
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