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.

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 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.

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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.

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 NZDUSD faces resistance on the H1 chart ahead of RBNZ Rate Statement. soruce: xStation5