NZDUSD: Bullish Trend on Hold

NZDUSD extends its rejection slide from 0.6786 the three month high but holding above the critical 200 day moving average. Earlier today a report that the RBNZ is starting to explore more unconventional policy pushed the kiwi lower. The New Zealand Consumer Price Index (quarter over quarter) last week matched forecasts of 0.6% in second quarter 2019 the previous reading was 0.1%. The Consumer Price Index (year over year) also came in line with forecasts of 1.7% in second quarter 2019, from 1.5%.

On technical side the pair rejected for three consecutive days at three month high around 0.6786. The pair trades above all daily moving averages giving the bulls the upper hand but the short term momentum turns bearish as today the pair breached the 50 and 100 hour moving averages just to stop at the 200 hour moving average. Support for the pair stands at 0.6721-0.6718 area today’s low and the 200 hour moving average and then at 0.6673 the 100 day moving average. On the upside immediate resistance stands at 0.6759 the daily high and if the pair manages to close above it might continue with an attempt to 0.6786 and then at 0.6836 the high from April 1st.  All in all the current bullish trend is on hold for now and traders with long position must activate stop loss order at 0.6718.Don’t miss a beat! Follow us on Twitter.

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