NZD/USD Bears are aiming 61.8% Fibo

As it was widely expected, the Reserve Bank of New Zealand left the Official cash rate at 1.75%, which has not been adjusted since 2016. The dovish statement of the central bankers triggered bearish mood for the NZD/USD pair and brought huge selling pressure. The pair is down with 0.55% today with current market price 0.6758. As seen on the four hour time frame the price is developing well below its moving averages, all of them keeping bearish slopes. RSI and stochastic are entering into extreme oversold territory but indicating that there is room for further declines. The downfall might continue towards the long-term support zone at 0.6720 (the 61.8% Fibonacci retracement of latest 0.7395 to 0.6850 bearish run) at least until the US GDP release which could move the sentiment in the opposite direction, leastways for a while.

EUR/NZD Pushing higher

Last week EUR/NZD was trading lower as New Zealand GDP missed market expectations. The pair bottomed at 1.6840 -1.6810 area where met the bullish trend line, starting from February 2017. So after testing for a while this significant support level finally bulls prevailed and during last sessions are showing strong upward strength. Today the pair broke the 2018 high at 0.7132 and currently is trading at 1.7154.
Technically speaking the short term outlook remains bullish. On the four hour time frame the price is developing well above its bullish moving averages. RSI and stochastic are located within extreme overbought territories and both are showing strong upward momentum.
Given the above EUR/NZD has potential to accelerate further and mark new highs. First resistance is seen at 0.7250 and a break above it will open doors for testing 1.7482. Meanwhile the upcoming session will bring the latest RBNZ monetary policy announcement with expectations to keep rates unchanged at 1.75% especially after the weak GDP numbers from last week, which will additionally support the New Zealand bulls. 

NZD/USD Bearish after soft GDP

The NZD/USD pair has been trending higher since the beginning of March and has entered into bullish channel, which was clearly broken after the New Zealand's GDP figures for the final quarter of 2017 turned to be a miss. Today the Kiwi continues to depreciate after breaking the support at 0.7250 and currently has settled at 0.7241.

Technically speaking the short term outlook remains neutral to bearish. On the four hour time frame the price is developing well below its moving averages having already bearish 20-day SMA, while the 100-day and 200-day SMAs are staying flat around respectively 0.7280 and 0.7300. RSI and stochastic are located within negative territories and both are showing strong downward momentum.
At this point  there is not much in the way of the bulls unless first retaking 0.7300 area, where is the bottom border of the channel and next 0.7350. On the flip side, it seems that the bears have taken a victorious march after breaking 0.7240 and obviously next target is 0.7200.
But will the pair succeed to break this hurdle will become clear next week when both FOMC and RBNZ rate decisions are due and that might be the catalyst for the next downward move. 

NZD/USD Boosted on RBNZ statement

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.