This is good and valid trade for NZDUSD based on NZD - RBNZ Interest Rate Decision
newdigital, 2013.07.25 09:11
Some more about NZD news event :
2013-07-24 21:00 GMT (or 23:00 MQ MT5 time) | [NZD - RBNZ Interest Rate Decision]
If actual > forecast = good for currency (for NZD in our case)
RBNZ's Wheeler Signals Policy Tightening In 2014 :
Reserve Bank of New Zealand Governor Graeme Wheeler on Thursday
indicated that the bank may consider tightening policy in 2014 if the
overheated housing market stokes price pressures.
At the same time, he noted that the bank will keep the Official Cash Rate unchanged through the end of this year.
extent of the monetary policy response will depend largely on the
degree to which the growing momentum in the housing market and
construction sector spills over into inflation pressures," Wheeler said
while announcing the bank's decision to hold the OCR unchanged at 2.5
"Although removal of monetary stimulus will likely be
needed in the future, we expect to keep the OCR unchanged through the
end of the year," Wheeler said.
He noted that the CPI inflation
has been very low over the past year, reflecting the high New Zealand
dollar and strong international and domestic competition. However, the
bank expects inflation to trend upwards towards the mid-point of the 1-3
percent target band as growth accelerates over the coming year.
said the Reserve Bank does not want to see financial or price stability
compromised by housing demand getting too far ahead of the supply
In May, Wheeler signed a memorandum of understanding
with Finance Minister Bill English, which awarded the central bank will
more powers to curb excessive growth in credit and asset prices in the
country through the use of four macro-prudential tools.
tools included adjustments to the core funding ratio, a countercyclical
capital buffer, adjustments to sectoral capital requirements and
quantitative restrictions on the share of high loan-to-value ratio (LVR)
loans to the residential property sector.
In addition to this,
the central bank is expected to announce measures to limit low-deposit
mortgage lending to cool the housing market.
Grant Spencer said on June 27 that limited house supply was at the heart
of the problem and strong demand supported by easy credit was
underpinning the rapid escalation of house prices.
However, he said housing cannot yet be described as a threat to overall inflation, given some slack still in the economy.
Nonetheless, Spencer opined that higher interest rates are not the
right policy response at this time and that the bank is seriously
considering the use of macro-prudential policy tools.
And this is example for profitable trade for recent nfp today, for USDCHF M15 :
MetaTrader Trading Platform Screenshots
USDCHF, M15, 2013.08.02
MetaQuotes Software Corp., MetaTrader 5, Demo
usdchf profitable for nfp
By the way, USDCHF may be more good for this system compare with the other pairs for example.
Thanks for this idea. We do not have charts but we have indicators :
Anyway - good idea. I am not at home for the last few days so I can not attach anything to the chart sorry. But I will try to evaluate this idea when I will come back on Monday.
I have downloaded iTrend and Price Channel Indicators and now demo testing on MT5.
itrend_v2.mq5 is there this indicator for metatrader 4 ?