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.

Free Trading Guides
EUR/USD
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
GBP/USD
Bearish
USD/JPY
Mixed
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
Bearish
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Breaking news

British Pound surges after UK exit poll shows Conservatives expected to win 368 seats out of 650

British Pound Halts Slide, New Zealand Dollar Extends Decline Following RBNZ Rate Decision

British Pound Halts Slide, New Zealand Dollar Extends Decline Following RBNZ Rate Decision

2010-03-11 17:00:00
David Song, Currency Strategist
Share:

03.11_DWL1

The British Pound halted the three-day decline and is the best performing currency against the U.S. dollar on Thursday, and the currency is likely to maintain its current range ahead of the Bank of England minutes due out on next Wednesday as investors weigh the outlook for future policy. The GBP/USD is nearly 60pips higher from the open after moving 70% of its daily ATR, and we may see the exchange rate hold along the 240-SMA at 1.5028 going into the Asian trade as the daily RSI continues its ascend from oversold territory. As a result, we may see a short-term correction in the pair as the relative strength index bounces back from a low of 21, but the pair is likely to maintain the narrow range carried over from the previous week as price action fails to hold above the 10-Day SMA. At the same time, we may see the pound-dollar maintain the downward trend from the January high (1.6456) as the BoE maintains a cautious outlook for the U.K., and dovish rhetoric from the MPC is likely to weigh on the exchange rate as investors scale back expectations for a rate hike later this year.

03.11_DWL2


03.11_DWL3

The New Zealand dollar extended the decline following the RBNZ interest rate decision on Thursday, with the exchange rate slipping to a low of 0.6964. The NZD/USD remains 30pips lower on the day after moving 67% of its average true range, and the pair may work its way back towards the 120-SMA at 0.7018 as the overnight decline stalls ahead of the 200-Day SMA at 0.6963. However, the lack of momentum to cross back above the 50-Day SMA (0.7097) earlier this week is likely to keep the pair range-bound going into the following week, but we may see a breakout later this month as the daily moving averages start to converge with one another. Nevertheless, as risk trends continue to dictate price action in the foreign exchange market, a rise in risk appetite could lead the NZD/USD to trend higher over the remainder of the week as the greenback remains the most popular fund-currency, next to the Japanese Yen.

03.11_DWL4

Join us to discuss the outlook for the major currencies on the DailyFX Forums

To discuss this report contact David Song, Currency Analyst: instructor@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.