The RBNZ has recently changed stance from dovish to neutral resulting into a more hawkish sentiment to the NZD. USD after enjoying a long 10week dominance over other currencies due to decreasing bond prices and high yields,has finally run out of steam; this coupled with geopolitical trade tension with china, N.Korea missle testing and Iranian nuclear weapon hype have led to a risk-off situation, giving other safe haven currencies like the Yen an upper hand.
With downward momentum on the NZDUSD pair running low we expect an imminent rally. There are major bank bid orders around 0.6520/10 which coincide with major weekly support level and around 15.3 fib level, creating a high probability trade. We recommend buying NZDUSD at the 0.6520 level with a long term TP at fib 61.8, 0.66639 (90 Pips), stop loss 15pips below.
Have a nice weekend.