NZD/USD: Are we set to see a bullish leg?
The New Zealand Dollar is currently trading at 0.64061 against the US Dollar during today's London session.
Starting on a higher timeframe its safe to say this pair has been sliding, with little to no retracement whatsoever. On the weekly timeframe, this is the 5th consecutive bearish trading week and we are currently approaching a level of support at 0.63500 as illustrated in the screenshot above!
Dropping down to the daily timeframe we can see since we had that high re-test of 0.68000 which essentially was a 3rd rejection of the descending trendline we saw the big decline in price with no retracement at all. As we approach the Fed meeting tomorrow evening we need to try an gauge what the overall sentiment around the dollar is and potentially what their next move is in terms of policy adjustment, with the Dollar Index currently trading at 98.39 and at a crucial make or break resistance level in and around 98.50. A rejection from these levels would see a retracement in Kiwi Dollar with 0.65000 insight as its next level of resistance!
Leading up to the event we know that US President Donald Trump has been applying a lot of pressure recently to the Fed so it will be crucial to see what their next policy move will be. Data wise, today is pretty quiet so stay tuned for further updates on our Market News Section as well as our social media accounts!