The Reserve Bank of New Zealand is meeting
tonight and will unveil its stance on the monetary policy. It’s widely expected
to keep the main interest rate unchanged at 1.75% as in Sempember the Acting
Governor shared his opinion that “numerous uncertainties remain, and policy may
need to adjust accordingly.”
In this line the New Zealand Dollar could not be particularly affected, having
is mind that during the past two weeks is much stronger comparing to its main
rivals.
The technical picture is more interesting for the EUR/NZD than the current
fundaments. On the four hour time frame we have a Falling Wedge pattern. The
Fibonnaci retracement of late October bullish run provides strong support at
61.8% (1.6660) and the price for now is stready above it. Meanwhile on the same
chart we have bearish 20-day SMA and the 100-day and 200-day SMAs are keeping
upward momentum. Indicators are located sightly below their mid-lines with RSI
turning to north and stochastic is losing directional strength. That said in
the showrt term there is a risk of crossing to below the above mentioned level
of 61.8% Fibonacci retracement and this will lead to a continuation to the
downside. But this will be against the Falling Wedge pattern. Currently the
price is stuck between the 50% and 61.8% levels of same Fibo and in case of
conquering the resistance at 50% (1.6770), doors are opened for testingt the 1.6800
handle.
No comments:
Post a Comment