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NZD/USD Signal - New Zealand Rates - 03 Oct 2016

Signal details
Entry Price: 
0.7300
Close Price: 
0.7273
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 2 ratings

The NZD/USD pair has been wandering in-between the 0.7224 and the 0.7330 area (highest to lowest price) for the past week and a half. According to some Research Analysts at Westpac the pair has been exploring this zone for so long due to the absence of any important events to stimulate its development on either side.

However we are expecting US payrolls report to be announced on Friday, which could be bearish for the dollar and would bring the NZD/USD to a rise. Nevertheless until then regarding the fact that higher-yield currencies tends to suffer when risk-off moods take over market sentiment, we are seeing some prospects of the NZD/USD pair to drop later today after rallying higher.

New Zealand’s central bank is expected to cut rates next month, so we can conclude that it is unlikely for the pair to break the next resistance which is located at the 0.7300 level to the upside. To sum up, we would be buying daily puts heading for the 20:00 GMT expiration at this same 0.7300 price target.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.