Chart of The day NZDUSD

Chart of The day NZDUSD

NZDUSD Potential Reversal Zone – Probable Price Path

NZD: The U.S. dollar hit a record low and supported commodity currencies such as the New Zealand dollar. The short-term resistance of the New Zealand dollar against the US dollar is at the 0.68 mark, and the support level is at the low of 0.663 on August 28. The New Zealand dollar strengthened against the US dollar for most of the day. It rose 0.3% to 0.676, a record high in more than a year. The US dollar’s decline at the end of the New York session narrowed, and the New Zealand dollar closed nearly 0.2% to 0.673. The New Zealand dollar rose 1.6% in August, rising for five consecutive months, rebounding 0.181 cumulatively from its low in March Central Bank Governor Orr will deliver a speech tomorrow to discuss the central bank’s monetary policy measures to cope with the coronavirus epidemic. The market is concerned about whether he will talk about the implementation of negative interest rates or comment on whether the current exchange rate of the New Zealand dollar is too strong. New Zealand’s July building permits fell 4.5% month-on-month, after increasing 0.7% in June

USD: The market expects that the Federal Reserve will continue to relax its policies. The U.S. currency exchange rate fell by nearly 0.4% at one time and fell below the 92 mark, setting a new low for more than two years. U.S. 10-year Treasury bill yields closed down nearly 2 basis points to 0.705%. Fed Vice Chairman Clarida said that the federal funds target rate has dropped to zero, and the forward guidance and asset purchase plan will continue to support the economy. The committee members may discuss how to adjust the forward guidance at the September interest rate meeting. In addition, he believes that it is not suitable for the committee  to adopt yield curve control operations and reiterated that he has no intention of implementing negative interest rates.US Treasury Secretary Mnuchin revealed that Senate Majority Leader McConnell may announce a revised round of rescue measures next week. Speaker of the House of Representatives Pelosi pointed out that there are still many practical problems with the Republicans regarding the new round of relief measures. White House trade adviser Navarro said the government plans to restrict more apps with Chinese background

Screenshot 2020 09 01 at 09.15.46From a technical and trading perspective, the NZDUSD looks poised to make a third test of ascending trend line resistance at the .6800 handle, this test coincides with developing momentum divergence as such bears quill be watching for intraday and daily reversal patterns to deploy short positions looking for a move back to test ascending trendline support towards .6570. A daily close above .6820 would negate the corrective thesis opening a move to test the psychological .7000 handle

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 76% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Share this post:

Credit: Tickmill

Leave A Comment

Your email address will not be published. Required fields are marked *