Weekly trade idea on NZD/USD
|Week: 23-27.11.2020
Key event: NZD. RBNZ’s Governor speech.
The Reserve Bank uses monetary policy to maintain price stability and to keep inflation between 1 and 3 percent on average over the medium term. The Bank implements monetary policy by setting the Official Cash Rate, which is reviewed eight times a year.
Hints of rising interest rates strengthen the currency.
Until the speech, we expect prices to range in the actual supply zone. The speech will surely cause a break of the zone either to the next supply zone or back to support levels.
Key Levels:
-
Resistance 0.6940, 0.7050
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Support 0.6780
Trend:
Bullish
Price is ranging in the supply zone between 0.6940 and 0.6890 levels. The speech will likely cause a breakout of the range.
Call to Action/Trade Idea
We will look for any opportunity to join the bullish trend. Either a retracement to previous support or a breakup of the supply zone.
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