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Instrument: NZDUSD
Bullish Preference:
A buy position is envisaged if the price trades above 0.59446 with take profit at 0.59499
Bearish Preference:
A sell position is envisaged if the price trades below 0.59364 with take profit at 0.59292
Fundamentals:
1:30 PM GTM+1 Building Permits
Comment:
NZD/USD quotes are under the 200-day Moving Average on H4, indicating the prevalence of a downtrend. The RSI has broken the support line. In this situation, a rebound from 1/8 (0.5920) is expected, followed by a decline to the support at 0/8 (0.5859). The scenario can be cancelled by rising above the resistance at 1/8 (0.59820). In this case, the pair might climb to 2/8 (0.5981). Meanwhile, the New Zealand Dollar will dance to the tune of the People’s Bank of China (PBoC) monetary policy, which is also scheduled for Wednesday. The PBoC is expected to continue to favor an expansionary policy framework to diminish deflation risks. Being a proxy for China’s economic recovery, an expansionary policy would support the New Zealand Dollar.
Analysis: SCRUM Team
