The biweekly GDT Price index showed a considerable improvement yesterday rising from -2.9% to 2.1%, this means one thing-the average price of the country’s main export product is improving and therefore there is an influence on the monthly GDP. Commodity pricing is crucial for any exporting country and today as the Weekly crude oil inventories is set to be released before the Feds minute, we shall be watching them closely as they have an effect on this pair.
Daily Chart Analysis
There is a clear price rejection and a downward momentum shown in this chart. Since price was strongly rejected from the 0.69 regions, we are seeing a US dollar bull at the moment. The stochastics are in tandem and the price closed above the 20 day moving average yesterday with a long tail. This means that there is a developing buying pressure. As it might be noted, the 20 day moving average, being the middle band of the BB has acted as support in the past 2 months and is significant, if it is convincingly broken and the OBV continues with a negative gradient, then we shall initiate a short in the shorter time frames.
We shall be looking at today’s Crude Oil Inventories at 2:30PM GMT+3 which is forecasted to 3.1M from 2.3M with an increasing stock of crude oil in inventories and at 6:00PM GMT+3, we shall wait to analyze all the tidbits from the Feds Minutes held last month.
4 HR Chart Analysis
This time frame is clearly showing that the pair is in an ascending channel and from yesterday, the price bounced off from the lower trend line of the channel-which is a strong support developed over the past two weeks. The Stochatics is also from the oversold regions and is rising. BB is also in sync with Stochastics and price action is rising from the lower band and we shall wait and see, if price close breach above the 9 month resistance line, then we initiate a buy.
We shall be looking for clues of the Feds long term monetary policy action from today’s Feds minutes. If it shows that inflation and employment is not good enough then we shall be selling the dollar and boosting the NZD bulls. Let’s also wait for Crude Oil Inventories today as they influence all the major commodity countries inclusive of the kiwi.
15 Minutes Chart Analysis
NZD has been on a bullish run from yesterday’s London session and is not showing any sign of slowdown. However, with the formation of that two bar reversal at the 200 day moving average which is our moving resistance we shall be waiting for price to close above it and a favorable indicator combination to initiate a buy.
Crude oil inventories and Feds minutes are important economic news today and we shall be watching them closely.