NZD/USD chart - Trading View
- NZD/USD dives to breach 0.68 handle as kiwi dampened on an unexpected dovish shift from RBNZ.
- The Reserve Bank of New Zealand kept interest rates unchanged at 1.75 percent, as expected, but said the next move is likely to be down.
- Markets were expecting the central bank to retain neutral bias on interest rates. The balance of risk has shifted to the downside.
- New Zealand 10-year bond yield hits record lows since the market was formed in 1985.
- The pair has been trading in a 'Symmetric Triangle' pattern and price action has been rejected at Triangle top.
- The pair is holding support at 110-EMA and break below will see test of 0.6737 (converged 200-DMA and trendline).
Support levels - 0.6799 (110-EMA), 0.6737 (converged 200-DMA and trendline), 0.67
Resistance levels - 0.6823 (55-DMA), 0.6848 (21-EMA), 0.6873 (5-DMA)
Recommendation: Stay short on break below 110-EMA, target 200-DMA.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
