RBNZ: Steady as she goes

RBNZ is to announce to its interest rate tonight at 20:00 (GMT) and is expected to remain on hold at +1.75%. The market has priced in the probability to remain on hold at 99.88% and the financial data also support the case as the inflation is currently at +1.6%, below RBNZ’s target range of 2-3%. Focus should shift to the accompanying statement and specifically to the inflation rate which has recently dropped. Another point to keep a look out for, would be the recent strengthening of the NZD. Overall, the statement could have a positive economic outlook, however due to the factors mentioned before we see the case for a cautious comment about the future rate hike path. NZD could weaken as the statement could be neutral to dovish.

NZD/USD yesterday, regained any losses it suffered due to the US stock market mini crash and continued to trade in a sideways manner staying between the 0.7370 resistance level and the 0.7250 support level. We see the case for the pair to continue in a sideways manner with a bearish tone in the short term as the fundamentals suggest. Should the bulls take the driver’s seat we could see the pair breaking the 0.7370 resistance line and aim for the 0.7417 resistance hurdle. On the other hand should the bears have the upper hand we could see the pair breaking the 0.7250 support level and aim for the 0.7180 support barrier.

German coalition partners: Painful Compromises

German parties have been negotiating hard and long in order to form a government coalition in the past few days. German chancellor Merkel stated that all of the parties involved in the coalition negotiations will have to make painful compromises. CDU currently seem to lack leverage on the negotiating table and we could see it making more painful compromises than the SPD on the issues of temporary workers and healthcare. SPD officials on the other side, seem to be confident that they are on the right track, however work still needs to be done. We see the case for the partners to reach an agreement at any given moment until the end of the week and for the EUR to strengthen upon announcement of the agreement.

The EUR/USD moved in a sideways manner yesterday testing the 1.2355 support line. We see the case for the pair to continue to trade in a sideways manner in the short term and it may experience some bullish pressures as the US stock market stabilizes even further. Should the pair find new selling orders we could see it breaking the 1.2355 support line and aim for the 1.2230 support area. On the other hand, should the pair find buying orders, we could see it breaking the 1.2495 resistance line aim for the 1.2600 resistance level.

How to Select Correct Forex Indicators for Trading?

Forex Indicators are those signals which are used to identify or create patterns with the help of the Forex experts’ opinions for trading in Foreign Exchange market.

Foreign Exchange market is the largest marketplace where plenty of deals are completed everyday filled with uncertainties. To get started in trading in Forex you don’t need anybody’s help or any support from any internal or external source. But in order to get more profit than loss, traders like to take the help of Forex Indicators. These are those valuable suggestions that give you signals towards correct direction. These are available at both free of cost and by spending expenses.

Foreign exchange marketing strategy never stays fixed at all. Even if a signal or indication worked perfectly today, it does not mean that the same strategy will work well next time as well. Hence before making any investment you must take reliable experts’ valuable suggestions for which you may have to pay them. This payment can be treated as an investment.

Mostly FX experts collect the raw data of Forex market transactions as the base input. Then they manipulate those data in several ways to create most possible successful pattern to identify the currency pair which can be most profitable. Remember no Forex Indicators are perfect as they are uncertain. But those who use their experience, knowledge and intelligence more and always keep an eye on FX market and record marketing price scenarios, rarely they fail to deliver.

It is the duty of Forex signals to provide appropriate signals of all entry and exit counts in all currency pairs. They should provide a facility of quick communication along with a desktop alert tool. Accuracy should be as high as possible with minimum 400 pips per month.

There are many types of Forex Indicators. Different strategies are made by them and all of them promise a lot. Find out “How the best Forex Signal minimizes Risk of Loss” to know the importance of foreign exchange indicators.