Source: PaxForex Premium Analytics Portal, Technical Insight
The RBNZ is almost certain to implement a 25bp rate hike. It should also raise its rate forecast, moving it closer to 3.0% than the current 2.6%. There could also be a discussion about reducing the size of the balance sheet. All of this should be enough to keep the hawkish bias in the rate markets and maintain support for the NZD in the short term.
NZD/CAD,D1
Pivot: 0.8516
Analysis:
As long as price is below 0.8516 follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 0.8516
- Take Profit 1: 0.8370
- Take Profit 2: 0.8734
Alternative scenario:
If the level of 0.8340 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 0.8340
- Take profit 1: 0.8250
- Take profit 2: 0.8139
Comment:
RSI indicates the potential for decrease in the medium term.
Key levels:
| Resistance | Support |
| 0.8835 | 0.8340 |
| 0.8734 | 0.8250 |
| 0.8570 | 0.8139 |
