News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/hQgZB9T73q
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10CKUR https://t.co/9JVh6BsWa2
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
Breaking The Bank

Breaking The Bank

Walker England, Trading Instructor,

Another exotic currency pair that demands to be noticed is the GBP/NZD. There are no direct correlations between the two economies solely based on their geographical locations. The pair has been in a continued downtrend dating back passed 2002 and dropped as much as 9000 pips from its 2009 high to present lows.

The big news on the plate for this week’s Economic Calendar is the next RBNZ (Reserve Bank of New Zealand) rate decision on June 8th and the BOE (Bank of England) rate decision set for June 9th. Currently, both banks are predicted to hold rates flat at their respected rate. If after these decisions are made, fundamental conditions remain the same, it is reasonable to predict that our trend will continue. A change in policy, by either bank, could potentially break the pair to new lows or reinforce support at current levels.

GBP.NZD06.07_body_Picture_1.png, Breaking The Bank

Price Action

Taking price in to a 4Hr chart we can see price closing in on the current all time low for the pair at 1.9916. This coincides directly with our previously established low in January of 2010 forming a direct line of support. Price will do either one of two things at this price level. If support falls, we can look for our trend to continue with lower lows being formed. Alternatively, support may hold and a double bottom will be established. This would allow prices to temporarily rise higher.

GBP.NZD06.07_body_Picture_2.png, Breaking The Bank

Trading Opportunity

My preference is to sell a break of support and look for the GBP/NZD trend to continue. Entry orders should be placed below the previous low of 1.9893. Stop losses can be placed at the previous high above 2.0250. Profit targets will look for new all time lows under 1.9200. This 700 pip target gives us a clear 1:2 risk/ reward level.

Alternative scenarios include a double bottom formation being established, and the GBP/NZD gaining counter trend momentum.

Walker England contributes to the Instructor Trading Tips articles. To receive more timely notifications on his reports, email instructor@dailyfx.com to be added to the distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES