RBNZ Steadies Downward Pressure on NZD/USD

The Reserve Bank of New Zealand (RBNZ) held its interest rate at 1.75%, however with dovish narratives as highlighted that the next possible move for the apex bank would be to the downside. This saw the NZD nose-dive against the USD. With the current ongoing strength in USD, the NZD/USD is a plausible place to sell the Kiwi at least on the shorter term.

Technically, the price is currently using a former support as a new resistance area (highlighted in grey) (see H1 Chart) highlighting a possible leg lower.

Fig 1: Hourly (H1) NZD/USD Chart

 

NZD/USD

Sell @ current market price (instant execution)

Stop: 0.68570

Limit: 0.67500

The upside risk is the above pair is a dollar weakness which the Fed has been looking to instil as recession fear grips markets. This scenario is highly likely, hence we advise traders to always use a stop loss.

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