-On Monday we had a higher than expected quarterly inflation figure. A drop would have added pressure on the RBNZ with regards to cutting rates once more.
– Yesterday we had the Global Diary Trade which reflects fluctuations in the price of milk as it is important to the kiwi. with the last release seeing a 3% drop, a 1.4% increase was seen yesterday.

-The green and red long horizontal rectangles are drawn in to show resistance and support lines.
-The green being my support and red being my resistance.
– Bulls look for buy opportunities on the support levels and bears for sell opportunities on resistance levels.

NzdUsd Daily Chart

The pair has been moving through an uptrend channel over a couple of months now. In September it made a significant high of 0.74900 failing to break through it as it acted as a key level of resistance dating back to May 2015. This level of Resistance is a psych level of 0.75000. We then saw price failing to make a lower higher by breaking through the Support level of 0.73175. Having seen it break down through the support channel, I hope to see it retrace back to the monthly pivot and also a role reversal in that regard. both these coincides on the fib zone. This would form the right shoulder and indeed confirm a reversal pattern in this regard. Price opened between the MM2 and MMP, reaching the monthly bear target last week and bouncing off the support level of 0.70328, below the MS2.

NzdUsd H4 Chart

Price opened just below the WPP having been on a decline the past two weeks. It has already cancelled out last week's decline reaching the weekly bull target early in the week. A break is eminent on the current level of support, 0.71856, and should this transpire I would hoping to see a down move towards the WPP which coincides with the Fib zone. A bounce off the 21 Moving Average as dynamic support is also eminent.

NzdUsd H1 Chart

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