Price Analysis NZD/USD: CPI coming up, bulls look to 50% mean reversion, bears, 61.8% Fibo
|The main event is NZ Q4 CPI data at 10:45am - Market is sitting at 0.4% q/q. "More broadly, the starting point inflation picture has improved and the outlook is looking more assured.
Let's take a look at possible outcomes for the price action just ahead of the event for both NZD/USD.
NZD/USD daily chart
The upside holds a tough confluence of 23.6% and 50% Fibo at 0.6680. "A print within the range of market expectations is consistent with a patient RBNZ and out updated call for a flat OCR for some time from here," analysts at ANZ Bank explained, which would bring this level into focus, so long as bulls can 'blow the doors off' through 0.6640. A miss in expectations or a disappointment within the report will open prospects for a test to the 61,8% Fibo at 0.6550 – A surprise will open up the 200-day moving average and 78.6% confluence around the 0.6500 round number guarding a full retracement back to the 0.6420s.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.