After the publication of data from the New Zealand labor market on Wednesday, investors will follow the RBNZ meeting. At 20:00 (GMT) the decision of the RBNZ on the interest rate will be published.
As expected, the interest rate will remain at the same level of 1.75%. With the escalation of the trade conflict between the United States and China, the largest trade and economic partners of New Zealand, the RBNZ is unlikely to decide to change its monetary policy, according to economists, until mid-2019.
If the accompanying comments of the RBNZ or at the press conference, which also starts at 20:00 (GMT), contain signals on the possibility of tightening monetary policy in the near future, the New Zealand dollar may strengthen, including against the US dollar, even on the Fed’s plans to tighten US monetary policy.
While NZD / USD is trading below the key resistance level of 0.6810 (ЕМА200 on the daily chart), the long-term negative trend continues, despite the current upward correction.
The signal for the resumption of short positions will be a breakdown of the local support level of 0.6630. After the breakdown of the short-term support level of 0.6600 (EMA200 on the 1-hour chart), the decline will accelerate.
*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics
Support levels: 0.6630, 0.6600, 0.6575, 0.6500, 0.6430
Resistance levels: 0.6700, 0.6740, 0.6810, 0.6860
Trading Scenarios
Sell Stop 0.6620. Stop Loss 0.6710. Take-Profit 0.6600, 0.6575, 0.6500, 0.6430
Buy Stop 0.6710. Stop Loss 0.6620. Take-Profit 0.6740, 0.6810, 0.6860
*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com
