NZ CPI NEWS RELEASE AT 22:45 GMT, Thursday, 15/July/2010
NZ CPI q/q Q2 **Forecast/consensus) 0.4% Previous 0.4%(Statistics Dept)
NZ CPI y/y Q2 * Forecast/Concensus 2.0% Previous 1.9%(Statistics Dept)
NZ CPI y/y Q2 * Forecast/Concensus 2.0% Previous 1.9%(Statistics Dept)
Note::** Forecast data extracted from Dailyfx.com
If the CPI exceeds + 0.10% , then BUY NZD/USD
If CPI is below - 0.10 %, Sell Down the pair
Wait for 10 minutes on the M5 chart after CPI News release, ,on the appearance of third candle, execute the trade in the direction of trend.
Now NZD/USD is hovering near 0.7200-0.7250 level, which is considered a possible Top for this currency pair.
I will not support any view on the possibility of further upsurge from this level. Technically, the immediate Resistance at 0.7300 is too demanding for this currency pair to breach. As such, the uplift momentum shall be limited even with a bullish CPI release.
A possible bullish CPI release may yield 30-60 pips max , and it shall be back to its previous trend . Be prepared for its downward correction near terms.
A bearish CPI release may send this pair down to 0.7092(50% Fibo Retr), follows by 0.6982 (23.6% Fibo Retr)
But do remember that there may be a rate revision by RBNZ on upcoming July 28. So keep a close watch on this currency pair which is currently with negative-biased sentiments, as correction to its recent rise is imminent.
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