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.

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
Mixed
Wall Street
Bearish
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
Gold
Mixed
GBP/USD
Bearish
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
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
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
  • We ended this past week with another cliffhanger. The $SPX teeters on the edge of a breakdown from the post-pandemic recovery. While we have NFPs and other key data ahead, the markets are likely to remain fixated on yields. My outlook for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/02/27/SP-500-Dollar-Reversal-Hinge-Not-On-NFPs-but-Markets-Risk-Imagination.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/mlNDDyTgex
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/70ZOJ0ZMwF
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Evr5KgUjVo
  • $GBPUSD corrects from stretched valuations, however, positioning clear is likely to entice dip-buyers. Get your market update from @JMcQueenFX here: https://t.co/sfFdBx9pN6 https://t.co/j6nnry65SW
NZD/USD Extends Bearish Series, RSI Dips Into Oversold Territory

NZD/USD Extends Bearish Series, RSI Dips Into Oversold Territory

David Song, Strategist

New Zealand Dollar Talking Points

NZD/USD remains under pressure as the Reserve Bank of New Zealand (RBNZ) keeps the official cash rate at the record-low of 1.75% in June, and the exchange rate stands at risk for further losses as it extends the series of lower highs & lows from earlier this week, while the Relative Strength Index (RSI) pushes into oversold territory.

Image of daily change for major currencies

NZD/USD Extends Bearish Series, RSI Dips Into Oversold Territory

Image of daily change for NZDUSD

The limited reaction to the RBNZ interest rate decision keeps the downside targets on the radar for NZD/USD, and the New Zealand dollar stands at risk of facing additional headwinds over the near-term as the central bank remains in no rush to start normalizing monetary policy.

Image of RBNZ calendar

The RBNZ reiterated that the cash rate can move ‘up or down – as necessary’ as inflation continues to run below the 2% target, and it seems as though Governor Adrian Orr & Co. will preserve the wait-and-see approach throughout the remainder of the year as the central bank looks to ‘ensure the OCR is at an expansionary level for a considerable period.’

Moreover, the statement suggests the RBNZ will continue to tame bets for a 2018 rate-hike as officials warn ‘the recent weaker GDP outturn implies marginally more spare capacity in the economy than we anticipated,’ and the central bank may merely attempt to buy more time at the next meeting on August 8 as ‘the Government’s projected spending impulse is also slightly lower and later than anticipated.

In turn, the RBNZ’s dovish forward guidance for monetary policy is likely to keep the New Zealand dollar under pressure, with recent developments in NZD/USD raising the risk for a further decline in the exchange rate as the bear-flag formation continues to unfold, while the Relative Strength Index (RSI) dips into oversold territory.

NZD/USD Daily Chart

Image of NZDUSD daily chart
  • NZD/USD stands at risk for a further decline as it snaps the November-low (0.6780), with the 0.6710 (61.8% expansion) to 0.6720 (61.8% expansion) region on the radar as the exchange rate extends the recent series of lower highs & lows.
  • Next downside region of interest comes in around 0.6600 (23.6% retracement) to 0.6630 (78.6% expansion) with NZD/USD at risk of exhibiting a more bearish behavior as long as the RSI holds below 30 and trades in oversold territory.

Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

Please add a description for the image.

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES