NZDUSD December trade balance showed much smaller deficit as exports beat the expectations but due to RBNZ dovish stance on the currency, the pair has been sold on rallies. RBNZ governor Wheeler stated that additional NZD depreciation would be appropriate and the monetary policy should be accommodative.
The pair has broken through ascending trend line and it proceeds towards POC1 1.6465-75 (H3, 50.0, bearish order block, previous breakout point, T-89) where it might reject. The zone already rejected the pair via T-89 pattern so we are watching it again for further rejections. If the price proceeds above POC1 it will face a strong X cross resistance within 1.6490-1.6500 zone. The targets for rejections are 1.6440 and 1.6400 initially.Some bounce at 1.6400 is expected due to historical buyers at the support.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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