NZDUSD Bears Target 0.6377
NZDUSD is trading flat at 0.6407 as the pair continues the downward move after Reserve Bank of New Zealand cut aggressively the OCR by 50bp to 1.00%, while the market forecasting a 25bp cut. The RBNZ Monetary Policy Committee expects growth to remain soft in the near term. The central bank has revised its GDP forecasts lower accordingly by -0.3 to -0.5 through the second quarter of next year.
On technical side the NZDUSD pair is bearish, as it trades below all hourly moving averages. Now the pair’s immediate support stands at 0.6402 yesterday’s low which if breached the pair will head to 0.6377 the low from August 7th and then at 0.6346 the low from January 2016. On the upside immediate resistance stands at 0,6427 the 100 hour moving average while more offers will emerge at 0.6445 the 200 hour moving average. All in all NZDUSD is bearish and a visit down to yearly low looks possible.