NZDUSD fell about 28 pts to 0.7332, while the two-year swap rate fell 4bp to 2.04%. After the central bank’s Market pricing for a November OCR cut has risen to around a 70% chance.
But NZDJPY seems to be an exception to reflect RBNZ's policy inaction but discounts its statement (MPS) in which they stated that the NZ dollar has risen more than expected.
Consequently, the pair began dipping consistently from this week’s highs of 74.884 levels to the current 73.581 levels, that's where it has struggled to hold onto the swings and appeared pattern candle. Bears have again been active to push back southwards below 7DMA for now (see ).
Breach of strong supports of 73.808 to bring in more environment, Use rallies for fresh shorts.
crossover occurs on moving averages (7DMA crosses below 21DMA), appears at 74.362 levels as a confirmation.
While and oscillators have been consistently converging downwards to the price dips on both EOD as well as monthly graphs, subsequently, on both time frames signal to prolong ahead.
On monthly charts, the price declines consistently below EMAs and more slumps likely as and appear with huge volumes.
Most importantly, the massive volumes on declining streaks are in conformity to the strong downtrend.
Hence, we could foresee more dips up to the next support only at 73.272 levels and upon breach this level, bears may even drag up to 72.239 levels again.
Hence, at spot ref: 73.583 (while articulating) we advocate one touch binary puts for intraday speculators in an on-going environment that is likely to fetch certain yields.