U.S. Dollar Supported as NZD/USD Double Bottom Shows Ahead of RBNZ

Talking Points:

– The U.S. Dollar stays upheld after a new bullish breakout, and we looked during many of these setups in yesterday’s webinar. Below, we focus-in on NZD/USD forward of today’s RBNZ rate decision, while also holding a deeper demeanour during USD, EUR/USD and USD/JPY.

– EUR/USD Sentiment stays towering during -1.58, USD/JPY is during -1.18 and GBP/USD during 1.34. Click here to entrance IG Client Sentiment.

– Looking for trade ideas? Check out a trade guides. And if you’re looking for something some-more interactive in nature, check out a DailyFX Webinars.

To accept James Stanley’s Analysis directly around email, greatfully sign adult here

The quiet week in a FX marketplace continues as a U.S. Dollar binds on to new gains. One of a few equipment of fad on this week’s calendar is expelled after currently when a RBNZ hosts a rate decision. But there are meagre expectations for any moves as a surrounding context is dizzying in nature. This is going to be a initial full financial process matter from halt RBNZ Govenror, Grant Spencer. But this also comes during a time when a RBNZ’s concentration is being debated, as modifications to a Reserve Bank Act might see practice combined as a mandate.

Suffice it to say, we substantially won’t see any rate adjustments during this afternoon’s outlay. The one change that we might see is a alteration to a bank’s acceleration target; yet even that brings questions as to how many that might pull rate expectations after Graeme Wheeler’s final press discussion in Aug saw a bank share a expectancy that rates would stay during stream levels until during slightest Sep of 2019.

NZD/USD is stability to redeem from a election-fueled waste that saw a span exam a 2017 low only dual weeks ago. This shows a double-bottom, and if we can see a down-side mangle next that indicate of support, a doorway can be non-stop for short-side positions as NZD/USD moves down to uninformed yearly lows.

NZD/USD Daily: Double-Bottom with Near-Term Resistance Showing Around Prior Support

U.S. Dollar Supported as NZD/USD Double Bottom Shows Ahead of RBNZ

Chart prepared by James Stanley

The U.S. Dollar

Against many currencies, a U.S. Dollar stays steadfastly bullish. In DXY, a Dollar is holding on to new gains after a ECB-inspired breakout. Last week saw buyers show-up to offer higher-low support above before resistance; yet we’ve now had over a week of insurgency uncover around a 95.00 level. Given a still calendar for a residue of a week, this might be indicating to a deeper retracement in this pierce before a longer-term bullish trend is prepared to continue. This could meant a retest of support during a before section of insurgency that hold a highs in DXY for a improved partial of a past 3 months. This section runs from 94.08-94.30 and has nonetheless to be tested as support after a bullish breakout.

DXY Daily: 95.00 Proving a Tough Level to Leave Behind – May Bring on Test of 94.08-94.30

U.S. Dollar Supported as NZD/USD Double Bottom Shows Ahead of RBNZ

Chart prepared by James Stanley

EUR/USD

The Euro continues to tip-toe reduce after a bearish dermatitis of dual weeks ago. Friday’s NFP news brought on a insurgency exam of before support around a pivotal section in a pair and, during this point, it appears as yet we have a lower-high to integrate with EUR/USD’s new lower-low. This can keep a doorway non-stop for short-side delay in a pair, with targets expel towards 1.1500, 1.1423, 1.1296 and afterwards 1.1216.

EUR/USD Daily: Bearish Price Action Highlights Deeper Retracement Potential

U.S. Dollar Supported as NZD/USD Double Bottom Shows Ahead of RBNZ

Chart prepared by James Stanley

One area that hasn’t seen strength in a U.S. Dollar over a past 24 hours has been USD/JPY. In yesterday’s article, we forked out this section of insurgency that’s hold a highs in a span for a past 6 months, and this is also display as cost movement tests a top-end of a longer-term exquisite crowd pattern. This insurgency appears to be entrance from a 23.6% Fibonacci retracement June-December 2016 bullish move. But, while a Dollar has remained comparatively clever elsewhere, we’ve seen a bit of Yen strength start to show.

USD/JPY Weekly: Reaction At Range, Fibonacci and Trend-Line Resistance

U.S. Dollar Supported as NZD/USD Double Bottom Shows Ahead of RBNZ

Chart prepared by James Stanley

For those that do wish to use this debility in a span after intersecting with insurgency to position-in to prolonged setups in USD, we’ve been looking during an area of support around a 1.1300 turn that could be serviceable for such a purpose.

USD/JPY Hourly: Unable to Break Longer-Term Resistance, Prices Now Testing Shorter-Term Support

U.S. Dollar Supported as NZD/USD Double Bottom Shows Ahead of RBNZ

Chart prepared by James Stanley

— Written by James Stanley, Strategist for DailyFX.com

To accept James Stanley’s research directly around email, greatfully SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

About author