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2 forex pairs I am looking at for RBNZ Official Cash Rate event

RBNZ NZD Official Cash Rate in 2 days

Reserve Bank of New Zealand is going to announce the Official Cash Rate (OCR) in 2 days. At the last announcement on 10 September 2015, Governor Wheeler announced a cut of 25 basis points to 2.75 percent.

Based on this paragraph in September, there may be one more cut by the end of 2015.

A reduction in the OCR is warranted by the softening in the economy and the need to keep future average CPI inflation near the 2 percent target midpoint. At this stage, some further easing in the OCR seems likely. This will depend on the emerging flow of economic data.

Take note that there are only 2 more monetary policy statements and OCR announcements by end of 2015. These are 29 October and 10 December.

History of RNBZ OCR decisions going back to 1999 is available here.

 

NZDUSD and NZDJPY charts

With the upcoming rate decision on NZD, I am looking at NZDUSD and NZDJPY. In both pairs, clear equidistant channels, clear trend, clear risk-reward proposition. In both cases, I am going to follow the trend in the big picture, trading my view that existing resistances do not break.

NZDUSD weekly chart

NZDUSD weekly chart

NZDJPY weekly chart

NZDJPY weekly chart

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Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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