Tomorrow morning at 4 o’clock we will learn the decision and level of interest rates in New Zealand. Interest rates in New Zealand are set by the Reserve Bank of New Zealand, which is the country’s central bank.
RBNZ decision on Wednesday at 4:00 GMT+2
The Official Cash Rate (OCR) serves as the official interest rate. The OCR was introduced in March 1999 and is assessed by the central bank eight times a year. The rate determines the cost of borrowing money in the country and provides the Reserve Bank with a tool to control both the level of economic activity and inflation in the country. An hour later there will be a press conference by the bank’s governor. Each such event has an impact on the currency’s quotations and we can also expect high volatility on the NZD tomorrow.
Technical analysis of EURNZD
It promises to be a very interesting night especially since the situation from the technical side is also quite clear. Especially interesting is the EURNZD pair.
On the daily chart, Friday’s daily candle formed an inside bar formation along with Monday’s. Today’s trading is still within the formation , we are waiting for the breakout. The MACD oscillator has entered an upward phase which could suggest an upward breakout.
Things got even more interesting on the H1 chart. Here we have a complete inverted Head and Shoulders formation and the price is getting ready to overcome its neckline. iH&S formations usually signal a change in trend or at least an upward correction.
Today’s data from New Zealand may give impetus to overcome the neckline or to reject it. If today’s data ends above 1.6000 and the MACD remains upward, it could indicate a move north after the data release. Also keep in mind the press conference, which may change the sentiment to the opposite.
This week 15-19 August I am pleased to invite you to several online sessions. Below is the schedule of meetings:
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
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