As it was expected, The Reserve Bank of New
Zealand left the official cash rate unchanged at 1.75%
and maintained its “on hold” stance for the monetary policy. The central
bankers revised up its inflation
forecasts and assumed that the the outlook for the economy was
improving. In line with this the New Zealand dollar was
boosted and posted some gains, while the US dollar was trading mixed on the
talks of tax reform delays.
Technically speaking the NZD/USD pair is showing good bullish traction. On the four hour time frame the price has crossed to above its bullish 20-day SMA, while the 100-day and 200-day SMA maintain moderate bearish slopes. RSI is heading north and is posting higher highs and lower lows. Stochastic is located within extreme overbought territory, but has eased for now. During the Asian session the pair nailed a two week high at 0.6975, but retreated later and calmed at the 23.6% Fibonacci retracement of latest September to October bearish leg.
First support is provided by the daily low at 0.6943, below which the pair will be poised to retest yesterday’s low at 0.6915 and in case of crossing it to below, doors will be opened for the key level 0.6900. Looking to the upside, a a certain move beyond the above mentioned 23.6% Fibo at 0.6966, which is the current price meanwhile, should reload bulls’ energy and dart them towards the psychological mark 0.7000.
Technically speaking the NZD/USD pair is showing good bullish traction. On the four hour time frame the price has crossed to above its bullish 20-day SMA, while the 100-day and 200-day SMA maintain moderate bearish slopes. RSI is heading north and is posting higher highs and lower lows. Stochastic is located within extreme overbought territory, but has eased for now. During the Asian session the pair nailed a two week high at 0.6975, but retreated later and calmed at the 23.6% Fibonacci retracement of latest September to October bearish leg.
First support is provided by the daily low at 0.6943, below which the pair will be poised to retest yesterday’s low at 0.6915 and in case of crossing it to below, doors will be opened for the key level 0.6900. Looking to the upside, a a certain move beyond the above mentioned 23.6% Fibo at 0.6966, which is the current price meanwhile, should reload bulls’ energy and dart them towards the psychological mark 0.7000.
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