The Reserve Bank of New Zealand will meet next week and the expectation is for a 50 basis point cut (they will meet on Wednesday in New Zealand). Today, the price fell below a swing zone between 0.6167 and 0.61796. That area will now be nearby resistance. On the downside, the 100-day moving average is at 0.6121. The 50% retracement of the upward move comes from the August low at 0.6113, and the 200-day moving average comes in at 0.6099.
That area between 0.6099 and 0.61213 will be a major downside target that sellers will need to push to and through if they want to regain more control in this currency pair.
With NZDUSD expected to cut by 50 basis points in US Fed’s thoughts down to 25 basis points for the next meeting, will this pair not be allowed to change its bias to the downside, or just to the key support near 0.6100?
This seems to be what traders are thinking.