Today Reserve Bank of New Zealand announces its monetary policy. During last two years, RBNZ gradually reduced rates from 3.5 percent to 1.75 percent, which is now on the all-time lows. Tone and remarks made by central bankers might bring some volatility therefore, providing trading opportunities. Now let’s have a look at the charts.
On the weekly time frame, NZDUSD is in the downtrend but without any significant momentum. First level to watch from to upside is at 0.6982-0.7052 range. If price manages go past this range, it could continue go higher. From the downside, very interesting zone is at 0.6800-0.6674 range. Strong upward move from this area could signal potential trend reverse.
NZDUSD remains in the slow downward move for three months now. soruce: xStation5
From the daily perspective, Kiwi holds the down trend line with nearest resistance located between 0.7007-0.7055. The most interesting level to watch is the daily demand zone. Embedded in the weekly zone, confirms significance of that area. A sharp move towards 0.6777-0.6675 range could result in the strong reaction to the upside.
Kiwi holds doen trend line between potential levels of interest from the sell side and from the buy side. soruce: xStation5
On the hourly chart, price bounced back from from 0.6941-0.6951 supply zone and is about to test this area for the second time. Currently price action doesn’t provide any great buying opportunities however, 0.6862-0.6850 is one to watch.
NZDUSD faces resistance on the H1 chart ahead of RBNZ Rate Statement. soruce: xStation5