NZDUSD Technical Analysis


NZDUSD is exploring the downside below 4-hour 200-MA as it hits a fresh post-RBNZ low. Examine the 8 February NZDUSD Technical Analysis for more.

8 February, GKFX – NZD/USD fell 50 pips to 0.7210 after the RBNZ kept rates unchanged as expected, but cut inflation forecasts amid slower growth.

A minor recovery that ensued ran out of steam at 0.7257 and the pair fell back below the 4-hour 200-MA of 0.7229. Currently, the spot is trading at 0.7208 levels, having clocked a new post-RBNZ low of 0.7202 just a few minutes ago.

The RBNZ lowered its inflation forecasts

The RBNZ projected that interest rates will likely stay at record lows until mid-2019. Further, the central bank pushed now sees inflation reaching the midpoint of its 1-3 percent target in the third quarter of 2020 – two years later than previously expected.

Also, RBNZ’s McDermott said the bank could look through volatile CPI readings as inflation expectations remain stable and warned that a drop in inflation could trigger a rate cut.

Thus, Kiwi is exploring the downside under the 4-hour 200-MA. However, break below 0.72 remains elusive for now.

8 February NZDUSD Technical Analysis

A break below 0.72 (psychological level) would expose support at 0.7185 (38.2% Fib R of Dec-Jan rally). Acceptance below the same will likely strengthen the bear grip and yield sustained move lower to 0.71-0.7070 (50-day MA).

On the other hand, a move above the session high of 0.7239 would add credence to the oversold nature of the RSI, leading to a quick move higher to the downward sloping 5-day MA and 10-day MA of 0.7272 and 0.7313, respectively.

Disclaimer

This article 8 February NZDUSD Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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