Yahoo Finance NZD/USD Forex Technical Analysis – Straddling Key 50% Level at .6467 Ahead of RBNZ Expected Rate Hike
The New Zealand Dollar inched lower on Tuesday in a lackluster trade as most investors took to the sidelines ahead of the Reserve Bank of New Zealand’s (RBNZ) monetary policy and interest rate decisions at 02:00 GMT.
On Tuesday, the NZD/USD settled at .6461, down 0.0006 or -0.09%.
The RBNZ is expected to raise its benchmark interest rate to its highest level in six years as it rejoins the battle with surging inflation.
Central bank policymakers are expected to lift the official cash rate (OCR) by 50 basis points (half a percentage point) to 2% in the latest monetary policy statement, with a warning that further rises are coming.
The increase closely follows a similar-sized rise in April, when the RBNZ said it was taking a “stitch in time” approach to tackling inflation at a 30-year high of 6.9%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through .6569 will change the main trend to up. A move through .6217 will signal a resumption or the downtrend.
The minor trend is up. This is controlling the momentum. A trade through .6291 will change the minor trend to down.
On the upside, the first resistance is a long-term 50% level at .6467. The second resistance is a price cluster at .6560 – .6569.
On the downside, the nearest support is a pair of 50% levels at .6393 and .6354. The major support is the long-term Fibonacci level at .6231.
Daily Swing Chart Technical Forecast
Trader reaction to the long-term 50% level at .6467 will determine the direction of the NZD/USD early Wednesday.
Bullish Scenario
A sustained move over .6467 will indicate the presence of buyers. Taking out .6492 will indicate the buying is getting stronger. This could trigger a surge into .6560 to .6569. Taking out the latter will change the main trend to up.
Bearish Scenario
A sustained move under .6467 will signal the presence of sellers. This could trigger a further break into a pair of 50% levels at .6393 and .6354. The latter is a potential trigger point for an acceleration to the downside.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
