The next RBNZ meeting is due on 9 December. While the Fed is getting ready to start tightening US , NZ tends to remain loose.
Amid lowering exports to China, falling commodity and dairy products prices and a slowdown in GDP growth, the RBNZ is likely to cut its interest rates again. The head of the RBNZ Graeme Wheeler has repeatedly stated possibility of this scenario.
Support and resistance
Today, due to the strengthening in the USD, the NZD/USD pair has rebounded down from the of 0.6575 (EMA200, EMA144 on the 4-hour chart and EMA50 on the ).
OsMA and indicators on the 4-hour chart have started giving sell signals. On the , is turning to short positions as well.
As long as the price is trading below the resistance levels of 0.6750 (EMA144), 0.6860 (23.6% Fibonacci), 0.6890 (EMA200 on the ), a downward dynamics remains valid.
Support levels: 0.6530, 0.6500, 0.6465, 0.6435, 0.6400.
Resistance levels: 0.6575, 0.6615, 0.6700, 0.6750.
Short positions can be opened from the current level with targets at 0.6500, 0.6470, 0.6435, 0.6400, 0.6310 and stop-loss at 0.6580.
Long positions can be opened from the level of 0.6610 with targets at 0.6690, 0.6750 and stop-loss at 0.6550.