New Zealand Dollar: NZD/USD (NZD=X) traders have been given their dovish marching orders from the RBNZ

New Zealand Dollar: NZD/USD (NZD=X) traders have been given their dovish marching orders from the RBNZ

New Zealand Dollar: NZD/USD (NZD=X) traders have been given their dovish marching orders from the RBNZ

There are no major events out of New Zealand this week, but traders have been given their dovish marching orders from the RBNZ.

In Australia, investors will get the opportunity to react to Westpac Consumer Sentiment and the RBA Financial Stability Review. Furthermore, RBA Assistant Governor Debelle is scheduled to speak. The main focus for traders could be on U.S.-China trade talks.

In the U.S., investors will get the opportunity to react to major economic reports from the U.S. including the Consumer Price Index, the Producer Price Index and the Federal Open Market Committee policy meeting minutes. A slew of FOMC Members are also scheduled to speak.

Traders will be paying particular attention to the CPI data especially because of the dip in U.S. Average Hourly Wages. The economy may be holding steady, but the Fed isn’t likely to switch gears to hawkish again if inflation continues to decline.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 0.68.

The projected upper bound is: 0.68.

The projected lower bound is: 0.66.

The projected closing price is: 0.67.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 21.1841. This is not an overbought or oversold reading. The last signal was a buy 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 37.96. 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 99 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 -121.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX NZD= closed down -0.002 at 0.673. Volume was 8% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
0.675 0.677 0.672 0.673 42,038

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 0.68 0.68 0.67
Volatility: 11 10 11
Volume: 47,196 44,542 49,655

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.

Summary

FOREX NZD= is currently 0.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on NZD= and have had this outlook for the last 3 periods.

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