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Barclays Capital is considering selling NZD/USD into the RBNZ meeting, and this advice is based on fundamental analysis related to economists' view concerning RBNZ meeting on 9
December 2015:
- 2015-12-09 20:00 GMT | [NZD - Official Cash Rate]
- 2015-12-09 20:00 GMT | [NZD - RBNZ Monetary Policy Statement]
The reasons for this forecast made by Barclays are the following:
- Many analysts are expecting for Reserve Bank of New Zealand to set the rate at 2.50% which is less than previous value at 2.75%. As we know - if actual value is less than forecast/previous value so it is bad for currency (for NZD in our case), and it means: more bearish for NZD/USD.
- RBNZ may express discomfort during with the recent strengthening of the NZD during the meeting, and it may force the currency to be down based on this talking for example.
From the trechnical point of view: Barclays is expecting for the price to be bounced from one of the key resistance level near 0.68/0.69 with the target to be around 0.64/0.62 support area. As we see from the chart above - the nearest key resistance levels are 0.6786 and 0.6895, and the nearest key support levels are 0.6427 and 0.6102. Thus, the best trading strategy adviced by Barclays is the following: sell from 0.6786 or 0.6895 resistance with 0.6427 level as a target.
