RBNZ decision does not help the upside
The NZDUSD is trading near the lows for the day at 0.66193.
The RBNZ decision did not help the upside for the NZDUSD. They still expect that rates will likely stay on hold through 2019 and into 2020. That is a long time. Moreover, other news out of NZ suggested some weakness in the economy:
- Farmers have turned net pessimistic for the first time in two years, and
- BNZ revised their expectation for dairy prices lower.
Looking at the daily chart above, the pair last week moved above a trend line at 0.6624. The move higher moved to 0.6698 (call it 0.6700). The price has moved to a low at 0.66193 so far. The underside of the broken trend line comes in at 0.6592 currently.
Looking at the hourly chart below, the price action today moved below a trend line and the 200 hour MA. There was a quick spike above the 200 hour MA, but it was quickly reversed. Bears remain in control.
The price is below the 38.2% at 0.66234. A lower trend line comes in at 0.6614. The 50% of the corrective move higher comes in at 0.6600. Those are targets on the next move lower.
With support on the daily at 0.6692 and the 50% at 0.6600, that area should be a key target area on the downside where traders might look for a stall.