Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Octa trading broker
Open trading account
Back

NZD/USD enters Asia on the bid, bulls eye 0.6630

  • NZD/USD bulls not going down without a fight and eyes are on 0.6630.
  • Bears are looking for a prime entry to take advantage of the longer-term bearish outlook.

NZD/USD is currently trading at 0.6582 between a low of 0.6547 and a high of 0.6596 as the bears are denied of an immediate feed on the downside. 

NZD recovered across the board dispute the Reserve Bank of New Zealand's dovish rhetoric and jawboning of the currency. 

''The near term picture is a conflicted one, with the RBNZ's reinforcement yesterday of the “least regrets” and “rather do too much too soon than too little too late” approach going head to head with improved optimism over a fiscal deal in the US and the consequent pick-up in risk appetite,'' analysts at ANZ bank explained.

''That’s probably not a bad way to think of how the next few weeks will play out, and with global forces typically winning out in the end, the risk is the trend is gradually higher, punctuated by locally inspired pull-backs.''

Risk-on kept bulls in play

Meanwhile, risk appetite was elevated on Thursday.

Fiscal stimulus has been talked about numerous times from various Fed officials which has driven home the conclusion that it is inevitable. 

President Donald Trump walked back on his calling for a halt to negotiations, urging Congress to pass money for airlines, small businesses, and relief checks for individuals after abruptly calling off negotiations.

This has fueled hopes that broader pandemic relief could be forthcoming, if only incrementally.

''While the political dance in Washington continues, the response to the deterioration in the virus is intensifying. Sixty-one more schools in NY closed bringing the total to 169. The initial guidance is that they won’t reopen until 21 October, but we are all aware of the risks to that,'' analysts at ANZ argued.   

Meanwhile, the bird kicks-off the Asian session at familiar levels, having navigated a circa 50bp range over the past 24hrs.

NZD/USD technical analysis 

As part of an ongoing longer-term bearish analysis:

(Monthly chart Reverse Head and Shoulders in the making). 

(Weekly chart, bearish head and shoulders in the making).

... in yesterday's analysis, it was explained that a higher risk downside trade setup came into play:

NZD/USD bears in control below 0.66 the figure, 1:3 R/R in play

Considering we have already seen a restest of 0.66 the figure and the rejection, there is a 1:3 risk to reward opportunity by taking a short at market, placing a stop loss above the near-term highs (structure). 

However, this is a higher-risk trade and would require a reduced percentage at risk. 

The price is yet to fully retest the structure and is facing two lots of support at this current phase of its break below 0.6600. 

The target can be moved to breakeven to exit or the reduced trade setup can be left in place. 

However, a reverse head and shoulder is now in the making which will rhyme nicely with the prospects for the price to indeed headed to the originally presumed 0.6620/30 resistance area.  

Reverse Head & Shoulders

0.6620/30 Sell Limit prospects for 1:4 R/R

Fed’s Rosengren: Limit to how much more we can lower long-term rates – BBG TV

Fed’s Rosengren, in a Bloomberg TV interview, has stated that there is a limit to how much more the Federal Reserve can lower long-term rates and expl
Read more Previous

Wall Street Close: Bulls enthused by stimulus hopes

Wall Street was lifted on Thursday on renewed hops of fiscal stimulus as essential to help stem the labour market's fall out, a rhythm that has gained
Read more Next