NZDUSD Next Support at 2016 Lows
NZDUSD is trading 0.024% lower at 0.6387 a level that we haven’t seen since January 2016 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 major hourly moving averages. Now the pair’s immediate support stands at 0.6371 today’s low which if breached the pair will head to 0.6346 the low from January 2016. On the upside immediate resistance stands at 0,6407 the daily high and the at 0.6430 the 200 day moving average. All in all NZDUSD is bearish and, a visit down to 2016 lows looks possible.