The
New Zealand Dollar got rocкed today after the RZNB’s decision to keep
interest rates at record low level of 1.75% until September 2020, a full year later
than previously projected, which was a great surprise for the markets. The
NZD/USD pair sharply plunged into the deep waters, losing around 125 pips and
down with 1.85% for the day.
Alongside the US Dollar picked up its buying interest which further supported additional
downward pressure and dragged the pair to its lowest level since March 2016.
Technically speaking the short-term outlook remains strongly bearish. On the
four hour time frame the price is developing well below its moving averages, all
aiming south. Technical indicators favour bears to grow stronger. RSI and stochastic are showing bearish momentum and
had entered into extreme negative territories.
From the current level 0.6624 the downside risk prevails and might send the
pair towards the key support at 0.6600, which seems next obvious target. On the
other hand any attempts by the bulls might now confront the 0.6680 area, which
if flighted is followed by the 0.6900 handle.
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