US indices rally after market correction – Forex trading strong NZD after rate cut [Video]

In today’s Market Outlook, let’s take a look at Forex Trading on BitCoin, BTCUSD, the DAX40, the FTSE100, NASDAQ, the S&P500, EURNZD, and NZDUSD.

The Reserve Bank of New Zealand lowered Interest Rates today but the NZD got stronger?

Why is that?  It’s important for traders to understand.

Looking at the economic calendar, I am always saying how important it is to follow the speeches AFTER the announcements.

Basically, the rate cut was already priced in but the statements and press conference afterward indicated no further cuts in the near future.

This sent NZD flying.

Now what?

Looking at the daily chart on NZDUSD, the opportunity is obvious.

If traders want to take advantage of the pull back and the current stronger USD we can watch for price action continuing lower by monitoring lower time frames.

Looking at EURNZD, we see the same opportunity for a long trade.

Check all your NZD pairs and you will find more opportunities, just like this.

In our last video we looked at a perfect storm of negative news affecting a risk-off mood with investors.

But, we also pointed out the signs of a technical reversal.

This week, we have a perfect storm of positive news including trade talks and investors abandoning bonds for equities.

Price action has broken through the upper trend lines in the latest downtrends.

We are also seeing MACD turning bullish again on the 4-hour charts, but, some very overbought stochastic oscillators.

With this in mind you may want to wait for a technical pullback and keep an eye on the news.

We also see opportunities on the UK FTSE100 with price action bouncing off the lower trend line and a strong reversal of the stochastic oscillator.

You may recall we were range trading on the DAX until recently but the current risk-on attitude has driven price action back into the lower range.

And, finally, we see Bitcoin well below $90,000 now and we will keep an eye on the news and look for a technical reversal on MACD which has been fairly faithful with Bitcoin.