NZD/USD: Regaining Losses As The USD Weakens
Daniel Bancans | Mar 11, 2016 11:08AM ET
Despite the large drop from the NZD after a surprise decrease in interest rates, the NZD/USD has regained a large majority of those losses today as the USD opens weak.
The NZD/USD has been trading within an inclining channel since the start of February. The currency pairing has been using the 200 EMA as a support zone. From the price action we are expecting the NZD/USD to reach the 0.6835 mark, or at least the previous high at 0.6815. However, due to the large upwards move today, we are expecting this is just fallout from the weeks policy meetings. Therefore, we are not expecting any definite directional movements this week and next week. Therefore, we advise not to set large targets, keep the profit targets small and achievable.
The pairing is more than capable of dropping off. If this is the case then we are expecting the pairing to retreat back to the 200 EMA line.
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