RBNZ rate decision setup for NZDUSD
Next week marks a rate decision event for RBNZ. Currently at 0.25%, there is news in the air for an increase in the rate by 25bp, and possibly another hike before the end of this year.
Currently
NZDUSD has been flowing more or less in the indicated upward channel. It has fallen due to a strong USD this week and a reversal is in the making.
Two highlight points on the chart indicate 1. a slight drop in US retail sales and 2. the RBNZ rate announcement.
Provided these events fall in support of the Kiwi, it is expected to bounce up and test the 0.7100 range and possibly further.
Point to note: currently the 4h signal shows the reverse from this week's downtrend has already started - however its a Friday!!! I feel like jumping on to the long already but may be worth waiting till NY open or London close to understand the levels better. There's a chance we lose pips on the entry but its a safer play. A well-placed stop may benefit the early birds.
See ref. think.ing.com.
Currently
NZDUSD has been flowing more or less in the indicated upward channel. It has fallen due to a strong USD this week and a reversal is in the making.Two highlight points on the chart indicate 1. a slight drop in US retail sales and 2. the RBNZ rate announcement.
Provided these events fall in support of the Kiwi, it is expected to bounce up and test the 0.7100 range and possibly further.
Point to note: currently the 4h signal shows the reverse from this week's downtrend has already started - however its a Friday!!! I feel like jumping on to the long already but may be worth waiting till NY open or London close to understand the levels better. There's a chance we lose pips on the entry but its a safer play. A well-placed stop may benefit the early birds.
See ref. think.ing.com.
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