No change expected.
The RBNZ will keep rates unchanged and release their statement. Adam warns to watch for a dovish statement, but a word here or a word there can tilt the balance. As a result, it is also good to understand the levels in play that will give, the next bullish or bearish shove.
Looking at the hourly chart, the pair has been moving up and down over the last 4 or so trading days. with defined support below and clear targets above. The current price is trading at 0.6757, up about 24 pips on the day. Although higher the price has been up and down and up again today. So trading seems to be controlled by the swings in supply and demand.
On an extension higher (more hawkish statement). the trend line and high for the day at 0.6760-62 and the 200 hour MA (green line) /38.2% at 0.6769 are the first targets. Get above those levels and there should be more upside potential.
The next target would be the 50% at 0.6784, followed by a topside trend line at 0.6791. Get above those levels and the pair has room to roam.
On the downside, since July 19th, the pair has a number of swing levels in at 0.67129-235 area. The low today reached 0.67213. The low yesterday and on Monday stalled at 0.6723. The low from Friday was at 0.6719. July 19th low reached 0.67129.
The lowest level since end of May 2016 was on July 3 at 0.88867 (see daily chart). A move below that level is unchartered territory going back to that time.
The NZDUSD has been a very narrow trading over the last 6 or 7 weeks. At some point there will be a shove. Traders will be on alert for the push from what the RBNZ says by watching the levels in play. Let the price action tell the way.
