Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
NZD/USD: kiwi is waiting for a signal
2019-11-11 • Updated
SELL 0.6815 SL 0.6870 TP1 0.6715 TP2 0.6625
BUY 0.6935 SL 0.6880 TP1 0.7035 TP2 0.7170
On the daily chart, NZD/USD is consolidating in the 0.6820-0.6980 range. A break of its lower border will increase the risks of kiwi going to 127.2% and 161.8% targets of a “Crab”. On the other hand, successful test of resistance at 0.6980 creates grounds for the pair going to 88.6% target of the “Shark” pattern.
On H1, a successful test of the neckline of the “Head and Shoulders” will allow the pair to continue its fall. On the other hand, going above 0.6930 will increase the odds of the rally’s continuation.
The riskier New Zealand dollar skyrocketed and pushed the NZD/USD pair up to the resistance level of 0.7150. How to trade it now?
We have outlooked several promising Forex pairs and the result can surprise you!
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The views here are solely based on Technical Analysis techniques using my personal Smart Money approach. Hence, it is important to understand that the trading of CFDs comes at a risk; if not properly managed, you may lose all of your trading capital. To avoid costly mistakes while you look to trade these opportunities, be sure to do your own due diligence and manage your risk appropriately.