NZDUSD trading 0.01% lower at 0.6241 at four-year lows as kiwi is under pressure after RBA cut interest rates and investors bet the RBNZ will follow. RBNZ, in its last monetary policy committee, left interest rates unchanged at 1% as expected by markets. The central bank noted that the risks are to the downside amid trade tensions, geopolitical turbulence and low business confidence.
NZDUSD made today fresh 4-year lows at levels that we haven’t seen since August 2015. A short-lived three day rebound stalled at the downtrend line around 0.68, and the bearish trend resumed driving the price today to fresh lows. On the upside, immediate resistance stands 0.6254 today’s high, and then at 0,6309 the high from September 27th. On the downside, immediate support stands at 0.6234 daily low and then at 0.6169 the lows from June 2009; The RSI trading out of the oversold area giving room for further downside move. NZDUSD short term outlook is bearish, and a break below 2015 lows now looks possible. Patient traders should wait for a convincing rebound above the 0.6403 where the 50-day moving average crosses to enter long positions.Download our latest quarterly market outlookfor our longer-term trade ideas.
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