NZD/JPY Down 3 Pips Over Past Hour, Moves Up For the 4th Consecutive Day; is Inching Close to 20 and 50 Day Averages
If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe.
(Last Updated August 12, 2022 0:24 GMT)
Here’s a look at the main macroeconomic data coming out later today that may impact the forex market.
Metric Name | Reference Period | Currency | Date | Time | Forecast | Outcome |
---|---|---|---|---|---|---|
Australia HIA New Home Sales MoM | Jul 2022 | Australian Dollar | 2022-08-12 | 00:30 GMT | ||
Euro Area Industrial Production MoM | Jun 2022 | Euro | 2022-08-12 | 09:00 GMT | 0.2% | |
United Kingdom GDP MoM | Jun 2022 | British Pound | 2022-08-12 | 06:00 GMT | -1.3% | |
Turkey Industrial Production YoY | Jun 2022 | Turkish Lira | 2022-08-12 | 07:00 GMT | 6.7% | |
United States Michigan Consumer Sentiment | Aug 2022 | US Dollar | 2022-08-12 | 14:00 GMT | 52.5 |
The chart below summarizes the price news by currency, showing which currency strengthened vs which weakened when equally averaged against other currencies. Of note is that NOK was the outperformer for the day, moving by 1.79%. Alternatively, USD moving by -1.3%, making it the worst performer of the bunch.
Currency Pair | Moving Average Period Crossed |
---|---|
USDCHF | 200 |
GBPJPY | 100 |
USDMXN | 100 |
USDNOK | 100 |
GBPUSD | 50 |
AUDNZD | 50 |
CADJPY | 50 |
USDZAR | 50 |
AUDCHF | 20 |
NZDCHF | 20 |
EURGBP | 20 |
From the perspective of the alignment of moving averages — meaning where moving averages are ordered by their duration — we see that USDTRY has perhaps the strongest trend. See the chart below.
One other point on moving averages: instruments in the Forex asset class that are near their 200 day moving average are USDHKD, CADCHF, EURGBP, USDCAD and USDCHF.
The Bank of International Settlements helps central banks coordinate their policies. As such, it can be an important institution for forex traders to monitor. Here is the latest from them:
Link | Publication Date | Summary |
---|---|---|
Benjamin E Diokno: Philippines – resilient today, economic powerhouse tomorrow | 2022-08-11 | Given its commitment to macroeconomic stability and unrelenting reform momentum, the Philippines is harnessing its potential to remain among the most resilient economies of today and become an economic powerhouse of tomorrow.Under the “Build, Build, Build” program, big-ticket infrastructure projects were rolled out. |
Joachim Nagel: Digital euro – opportunities and risks | 2022-08-10 | One of them is central bank digital currency (CBDC), specifically the digital euro.With a digital euro, future digital payments in the euro area could be carried out independently of non-European payment infrastructures. |
Joachim Nagel: Speech at the ceremony marking the change of office at the Regional Office in Bavaria | 2022-08-10 | Welcome to this ceremony marking the change of office at the Bundesbank’s Regional Office in Bavaria.At the end of July, you, Mr Benedikt, will retire, and Mr Vollbracht will then take over as president of this Regional Office. |
If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe.
Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed up.
The clearest trend exists on the 90 day timeframe, which shows price moving down over that time.
The clearest trend exists on the 90 day timeframe, which shows price moving down over that time.
Compared to its peers in the forex, gbpusd gave its buyers a return that ranked 3rd in terms of percentage change since yesterday.
The closest is the 20 day average, which is 213.5 pips away.
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe.
Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down.
It’s been a feast for bears operating on an hourly timeframe, as gbpcad has now gone down 8 of the past 10 hours.