NZDUSD Report and Trade Opportunity: Members Edition

NZDUSD Report and Trade Opportunity: Members Edition

I have published a detailed forecast a week ago, pointing out Dovish RBNZ and possible negative effects of US-China Trade deal in NZD.

NZDUSD Futures: Pay attention to Farmer’s market

The RBNZ kept the interest rates unchanged at 1.75% within the market expectations.

In the post-decision meeting text, the announcement of the next interest rate movement would probably be downward, causing sales to the NZD pairs.

After the RBNZ statement, the pricing trend slid downwards while the expectations for October decreased to 1.40%.

See below chart

When we examine the real interest rate differences between the USA and New Zealand, we see that 1 vs (-) 0.15 is in favor of USD.

Technically;

In the short term, after the false break out of the triangle area, the catalyst that was expected by the sellers came with the effect of RBNZ and the pair broke below 0.6800.

What can be done?

I expect the continuation of the decline in the active futures contracts that we reached the target of 0.6440 a few months ago.

Under 0.68 support respectively

0.6670 / Reached

0.6590 / Reached

0.6550

0.6440

0.6340

and I expect a retreat to the formation target, 0.6200

What to pay attention:

Shorter term: Daily closing above 0.70 would invalidate the triangle formation.