NZD/USD Technical Analysis: Drops after RBNZ inflation data, sellers focus on 50% Fibo.
|- NZD/USD declines nearly 15 pips after RBNZ’s Inflation Expectations came in below prior data.
- 50 and 61.8% Fibonacci retracements could entertain sellers ahead of challenging them with a six-week-old rising trend-line.
Following a downbeat reading of the RBNZ’s inflation expectations, NZD/USD declines to 0.6342 during early Tuesday.
The Reserve Bank of New Zealand’s (RBNZ) Inflation Expectations for the fourth quarter (Q4) lag below 1.86% prior to 1.80% for two years. The data suggests a bearish bias of the New Zealand’s central bank ahead of Wednesday’s rate decision. With this, the kiwi keeps being under pressure.
Hence, 50% Fibonacci retracement of October-November upside, at 0.6335, can offer immediate support to the pair ahead of dragging it to 61.8% Fibonacci retracement level of 0.6300.
Though, an upward sloping trend line since October started, at 0.6295, will restrict pair’s further declines, if not then mid-October lows near 0.6240 and the previous month bottom around 0.6200 will return to charts.
In a case prices rise beyond 100-bar Simple Moving Average (SMA) level of 0.6385, a fresh rise to 0.6400 and 0.6440 can be anticipated while doubting pair’s further run-up beyond the monthly top of 0.6467.
NZD/USD 4-hour chart
Trend: Bearish
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