Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
NZD/USD: Near-term Range Braces for RBNZ; Key Resistance 7450

NZD/USD: Near-term Range Braces for RBNZ; Key Resistance 7450

Talking Points

  • NZDUSD at risk ahead of RBNZ
  • Updated targets & invalidation levels

NZDUSD 120min

Chart Created Using TradingView

Technical Outlook: Heading into the RBNZ interest rate decision shortly after the New York close, Kiwi continues to hold below former trendline support, now resistance. On whole the pair has setup a well-defined weekly opening-range and we’ll be looking for a break heading into the release.

Kiwi is now testing resistance on the back today’s FOMC policy meeting with a breach here targeting 7390 & key resistance at the 2016 high-day close at 7449. Interim support rests at 7292/96 backed by the weekly & monthly opens at 7248/56- a break below this region would be needed to shift the focus lower targeting 7218 & the 61.8% retracement at 7155. From a trading standpoint, I would be looking for near-term strength to offer favorable short entries while below the high-day close. For the complete setup and to continue tracking this trade & more throughout the week- Subscribe to SB Trade Desk.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net shortNZDUSD- the ratio stands at -1.39 (42% of traders are long)- bullish reading
  • Long positions are 7.5% above levels seen last week while short positions are 17.3note% higher over the same time period.
  • Open interest is 6.7% lower than yesterday and 13.1% below its monthly average.
  • Note that SSI has continued to come off extremes since the high registered earlier this month and although retail traders remains net short, the risk remains for a move lower while below key resistance.

Help fine-tune you entries, click here to learn more about the DailyFX Grid Sight Index (GSI)

Relevant Data Releases This Week

Other Setups in Play:

Looking for more trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

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

DISCLOSURES