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
More View more
Real Time News
  • US Dollar Outlook: Fed Decision Due - Will it Spark Fireworks? The $DXY edged lower on Tuesday with $EURUSD, $GBPUSD, and $USDJPY all feeling Dollar weakness. Will the Fed catch markets off-guard with another hawkish surprise tomorrow? Link to Analysis - https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/07/27/us-dollar-outlook-fed-decision-due-will-it-spark-fireworks.html https://t.co/iTt0jJiuUC
  • Crude oil prices are trading largely unchanged following last week's rebound as the Delta variant of Covid and Chinese regulatory measures temper the near-term demand outlook. Get your market update from @FxWestwater here:https://t.co/T3oQa9qksd https://t.co/qgDReDbtcd
  • USD/JPY price action has weakened sharply on the session but is searching for support. Get your $USDJPY market update from @RichDvorakFX here:https://t.co/s6baPFYuS3 https://t.co/1ze3cKJytb
  • RT @BrendanFaganFx: Nasdaq 100 Outlook: Stocks Decline Despite Stellar Tech Earnings, All Eyes Shift to Fed $AAPL $MSFT $GOOG $QQQ $NDX L…
  • $SPX put in for an impressive midday recovery this past session leaving a large lower wick. The scale of the lower wicks consistently larger than corrections off highs https://t.co/BGkiFUwYsk
  • 🇰🇷 Consumer Confidence (JUL) Actual: 103.2 Previous: 110.3 https://www.dailyfx.com/economic-calendar#2021-07-27
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.53% 🇬🇧GBP: 0.44% 🇨🇭CHF: 0.13% 🇦🇺AUD: -0.32% 🇨🇦CAD: -0.46% 🇳🇿NZD: -0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/foLJDv5tkA
  • US API Stock Changes Crude -4.728M Cushing -0.126M Gasoline -6.226M Distillate -1.882M #OOTT $CL_F
  • RT @Nadex: The Macro Setup is back! Tune in as @GuyAdami, @RiskReversal, and special guest @CVecchioFX discuss: -Stocks lower ahead of big…
  • Heads Up:🇰🇷 Consumer Confidence (JUL) due at 21:00 GMT (15min) Previous: 110.3 https://www.dailyfx.com/economic-calendar#2021-07-27
NZD/USD Moves to Yearly Highs on RBNZ News

NZD/USD Moves to Yearly Highs on RBNZ News

Walker England, Forex Trading Instructor

Talking Points

  • The NZD/USD breaks to yearly highs on RBNZ rate decision
  • Historical Distributions Look Higher as Prices Retrace
  • Bearish Reversals Begin for the NZD/USD under .7080

The NZD/USD continues to trade higher this morning after the RBNZ (Reserve Bank of New Zealand) kept key interest rates flat at 2.25%. Today’s initial breakout occurred when prices traded above the previous 2016 high at .7053. Now with prices trading firmly above this value traders are now watching to see if upward momentum can continue to push prices above the daily high that currently resides at .7147.

NZD/USD Daily Chart Breakout

NZD/USD Moves to Yearly Highs on RBNZ News

(Created using Grid Sight Index)

Monitor GSI in Real time! Get started HERE.

Displayed in the graph below, we can now see the NZD/USD trading in a short-term downtrend. However, despite of a series of short-term lower lows GSI has placed its closest historical distribution point higher. GSI reviewed 29,826,580 pricing points, and out of 135 matching events, prices rose 13 pips in 56% of previous instances. A move to this point would suggest a fresh bout of bullish momentum for the pair. At, which point, traders may look for new breakout opportunities back in the direction of the primary trend.

In the event that the NZD/USD reverses lower, traders should look for prices to test the first bearish distribution point. Out of the 135 matching events, GSI has pointed out that the market declined 12 pips in 34% of these events. This places the first bearish distribution at a price of .7116. A move to this point would be significant and potentially opens the NZD/USD to further declines in price. In this bearish scenario, traders should watch for a move towards the final distribution point at 7080. A decline of 48 pips occurred in just 4% of the represented 135 events, and would suggest a major shift in market momentum.

NZD/USD Moves to Yearly Highs on RBNZ News

What is GSI?

Grid Sight Index is a powerful big data indicator that can help you determine whether short-term trends will continue or reverse. GSI takes a snapshot of current price action and uses that to find similar events by studying millions of historical data points. Then it studies those events to show you how often the trend continued or reversed in the past.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

Looking for additional trade ideas for US Dollar Pairs? Check out our Trading Guide

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

DISCLOSURES