Both of these indicators are closely
watched by the Forex market. An initial strengthening of the Greenback was
reversed, which is indicated by the long tail on the ten-minute bar on the
chart above. Thereafter the exchange rate just meandered while market
participants tried to make up their minds about the implications of it all.
Today’s report to watch to indicate
developments in the EURUSD pair is the Reuters/Michigan Consumer Sentiment
Index.
NZ
central bank decision hammers the Kiwi
The decision for the Reserve Bank of
New Zealand (RBNZ) regarding core interest rates was finely balanced, but in
the event they decided to cut. This made for a torrid time for Kiwi bulls
yesterday, who would have opted for a stance that reflected the belief that
rates would remain the same.
The chart above shows the gap down on
the announcement. This looks like a structural development in Technical
Analysis (TA) terms – in other words its reverberations are likely to continue
into the future and reinforce the dominant trend in the NZDUSD pair, which is
downward, but which had shown indications of changing to an uptrend, or at the
very least of putting in a major correction, prior to the announcement.
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