The New Zealand Dollar is in consolidation on Tuesday as investors closed most of their trading positions ahead of Reserve Bank of New Zealand’s interest rate decision, monetary policy statement and press conference at 16:00 (GMT-7). Don’t be surprised if the central bank sounds a little hawkish. RBNZ Governor Wheeler is also scheduled to speak.
Technically, my preferred Elliott wave count suggests NZDUSD may get ready for a rally in short term after wave i of 3 has ended at 0.6840. The rally is considered wave ii of wve 3. In the coming several trading hours, NZDUSD may try to reach 0.7050 zone before a retreat or continue the rally in short terrm.
Further in near term, the sideways range still dominates the NZDUSD pair’s trading in case the price continues to fluctuate between the key levels represented by 0.6840 support and 0.7050 resistance. The price needs to breach one of these levels to detect its next destination clearly, thus, neutrality is still valid right now.
By Jack Huyn
Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.