Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Reserve Bank of New Zealand cut interest rates by 50 basis points from 5.25% to 4.75%, matching market expectations for a jumbo cut. Forex traders can compare this to the Reserve Bank of New Zealand’s previous interest rate announcement, where the central bank surprised markets with a 25 basis point interest rate cut from 5.50% to 5.25%.
US Final Wholesale Inventories for August are predicted to increase by 0.2% monthly. Forex traders can compare this to US Wholesale Inventories for July, which rose 0.2% monthly.
US Crude Oil Inventories Change for the week ending October 4th are predicted to increase by 2.000M. Traders can compare this to US Crude Oil Inventories Change for the week ending September 27th, which rose by 3.889M. US Gasoline Inventories Change for the week ending October 4th are predicted to contract by 1.500M, and US Distillate Stocks Change to drop by 2.300M. Traders can compare this to US Gasoline Inventories Change for the week ending September 27th, which increased by 1.119M, and US Distillate Stocks Change, which dropped by 1.284M.
The forecast for the NZD/USD has turned cautiously bullish after this currency pair corrected into its horizontal support area following the expected interest rate cut by the Reserve Bank of New Zealand. The Tenkan-sen and the Kijun-sen are moving lower, which suggests short-term downside pressure remains with the likelihood of more volatility. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are moving higher, pointing to medium-term upside momentum. Traders should also monitor the CCI in extreme oversold territory with fading downside momentum. A breakout by this technical indicator above -100 could trigger the expected rally in price action. Can bulls regain control over the NZD/USD and push price action into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NZD/USD remain inside the or breakout above 0.6055 to 0.6110 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6085
- Take Profit Zone: 0.6240 – 0.6300
- Stop Loss Level: 0.6035
Should price action for the NZD/USD break down below 0.6055, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6035
- Take Profit Zone: 0.5960 – 0.6000
- Stop Loss Level: 0.6055
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