The RBNZ will meet next week and expectations are a 50 basis point cut (they meet on Wednesday in NZ). The fall today and the price below a swing area between 0.6167 and 0.61796. That area will now be close resistance. On the downside the 100 day moving average comes in at 0.6121. The 50% retracement of the move up from the August low comes in at 0.6113, the 200 day moving average comes in at 0.6099.
That area between 0.6099 and 0.61213 will be a key downside target that sellers would need to push to and through if they are to take back more control in this currency pair.
With the NZDUSD expected to cut by 50 basis points in the US Fed thoughts down to 25 basis points for the next meeting, does not allow for this pair to shift the bias down, or just to the key support near near 0.6100?
That seems to be what traders might be thinking.
This article was written by Greg Michalowski at www.forexlive.com.
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