NZD/USD 2 Days Ahead Of The News
EWM Interactive | Oct 30, 2014 06:05AM ET
Yesterday, on October 29, 2014, the FOMC announced the end of the quantitative easing (QE) program. After the announcement the US dollar rose sharply against the other currencies. Most people would say that the FOMC decision was the reason for this. That is why they have been waiting for it in order to make their trading decision.
On October 27, 2014, two days before the FOMC announcement, we published an article, called five-wave impulsive decline from the end of wave Y at 0.8032. On the next chart of NZD/USD you can see what has happened with the pair since our Monday’s forecast.
As visible, the exchange rate went into the reversal zone and then continued a little higher. The important thing is that it did not reach the invalidation level of 0.8032, so the bearish scenario was still in play. Then came Wednesday and the sell-off we have been waiting for. Many may see it as a result of FOMC. To us, it is nothing else, but a natural outcome. This situation provides a good example of the Wave Principle’s ability to prepare you for future developments long before their “cause” is known to the public. In this case, we were two days ahead of the news.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.