On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
NZD/JPY turned down
2019-11-11 • Updated
SELL 71.90; TP1 71.75; TP2 71.40; TP3 70.90; SL 72.20
NZD/USD has turned down on July 22 and retraced more than 38.2% of the June-July advance. A “bearish engulfing” pattern was formed on W1. This likely means that the overall downtrend has resumed. The pair has support at 71.75 (50% Fibo, 50-day MA). A decline below this level will open the way down to 71.40 (61.8% Fibo) and 70.90 (78.6% Fibo).
Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
The trend in the scenario above is clearly bearish. We have also had a recent break of structure at the marked horizontal arrows, which means we can expect price to react from the supply zone that broke the structure.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?