Forex Technical Analysis, NZDUSD Daily Forecast June 8, 2016
Technical Analysis – The NZD/USD pair initially tried to fall during the day on Tuesday but then turned around to form a very bullish candle. At this point in time, looks like we’re going to test the 0.70 level, and as a result it’s very likely that if we can get above there the market will be reaching towards the highs again at the 0.7050 level. Pullbacks should find plenty of support just below, as the market looks heavily bullish at this point in time and the 0.69 level should be the “floor” in this market.
In Other View Point – NZDUSD back to 0.70 resistance. RBNZ June meeting in Focus.
NZDUSD has been in a steady uptrend after prices broke out from the falling wedge, since the past week. The rally now reaching the familiar resistance of 0.70, which has held out two times previously. Mind the stochastics showing a hidden bearish divergence. RBNZ June meeting is up later tonight and the CB is expected to hold rates steady at 2.25% (but could be a very close call). Next meeting only in August. NZDUSD has gained strongly since the April RBNZ event where rates were left unchanged. If the RBNZ leaves rates steady today, they will have to make up for it by talking down the kiwi strongly, especially if the Fed will end up leaving rates unchanged next week. Failure to break out above 0.70 will mean NZDUSD could slide to the first minor support at 0.69 followed by a dip to 0.68.