As we could see in my previous NZDUSD ANALYSIS , the pair has rejected from 0.6620 to 6560 making 60 pips but then failed to break 6550 for a new surge of selling. Contributing to a failure of a further bearish momentum is RBNZ decision to cut the rates by only 25bps which went according to expectations.
Governor of RBNZ Mr. Graeme Wheeler stated that further cuts are possible as NZD is still too strong. NZDUSD continued to push higher but we must also consider a POSITIVE EURUSD vs NZDUSD CORELLATION which is also contributing to a rally.
Technically NZDUSD is trying to reach POC zone( Historical Sellers, 78.6 fib, inner trend line ) at 0.6710-30 which could be used for shorting towards 0.6650 level and 4H close below 0.6650 will put the pair in bearish channel again targeting 0.6600 and 6550. Historical sellers and inner trend line resistance are always making very good confluence and this scenario is invalid if we get 4h close above H5 – 0.6785.
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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