OctaFX | OctaFX Forex Broker
Open trading account

NZD/USD Technical Analysis: descending channel breakout confirmed ahead of Fed

The NZD/USD pair crossed the descending channel hurdle yesterday, signaling an end of the pullback from the recent high of 0.6969 and a resumption of the bullish move.

So far, however, the pair has struggled to capitalize on the bullish breakout. As of writing, it is trading at 0.6858, having clocked a high of 0.6880 yesterday.

The Fed will announce its policy decision on Wednesday, at 1900 GMT. Markets seem positioned for a “dovish hike”, where the Fed hikes rates by 25 basis points, as expected, but lowers its rate hike forecasts. As of now, markets are assigning just a 30 percent probability of a single rate rise in 2019.  

The Fed, however, may remove just one rate hike from September's forecast of three 2019 rate hikes, leaving the markets well behind the curve. As a result, the risks surrounding the US dollar are skewed to the upside, meaning the bull breakout seen in the NZD/USD pair could end up trapping the bulls on the wrong side of the market.

4-hour chart

Trend: Cautiously bullish


    Today Last Price: 0.686
    Today Daily change: 12 pips
    Today Daily change %: 0.175%
    Today Daily Open: 0.6848
    Previous Daily SMA20: 0.6851
    Previous Daily SMA50: 0.6722
    Previous Daily SMA100: 0.667
    Previous Daily SMA200: 0.6843
    Previous Daily High: 0.6881
    Previous Daily Low: 0.6798
    Previous Weekly High: 0.6912
    Previous Weekly Low: 0.6778
    Previous Monthly High: 0.6887
    Previous Monthly Low: 0.6514
    Previous Daily Fibonacci 38.2%: 0.6849
    Previous Daily Fibonacci 61.8%: 0.683
    Previous Daily Pivot Point S1: 0.6804
    Previous Daily Pivot Point S2: 0.6759
    Previous Daily Pivot Point S3: 0.672
    Previous Daily Pivot Point R1: 0.6887
    Previous Daily Pivot Point R2: 0.6925
    Previous Daily Pivot Point R3: 0.697


Trump issues US Federal Government shut down on December, 24th

Reuters is out with the latest headlines, citing that the US President Donald Trump has given an executive order for the US Federal Government to shut
Read more Previous

Japan PM Abe: Tax revenue to hit record high in FY 2019/20

Japan's Prime Minister Shinzo Abe is out on the wires informing markets that government's tax revenue in the financial year 2019/20 is expected to hit
Read more Next
Start livechat