Exit Bulls, Enter Bears or vice versa? Your move RBNZ!
Updated
This Wednesday we have RBNZ's Official Cash Rate and Rate Statement. Will this news event give the signal for a bearish move to sub 0.7 levels? I can see price do a number of things by Wednesday.
I'm biased towards lower levels even though RSI is almost and Stoch already oversold on 4H.
However, they aren't on Daily and thus I could see H4 levels getting stretched.
As indicated on the short I see various levels that could cushion the fall for weeks to come if we in fact move lower.
Let us see.
- Already anticipating bad NZD news and break lower to 0.6680 region
- slowly moving towards the lower trend line which then breaks upon the news
- Staying around current levels (0.6840 - 0.6875) and then break lower OR
- Less likely IMO, move up due to relief
I'm biased towards lower levels even though RSI is almost and Stoch already oversold on 4H.
However, they aren't on Daily and thus I could see H4 levels getting stretched.
As indicated on the short I see various levels that could cushion the fall for weeks to come if we in fact move lower.
Let us see.
Note
Looks like price choose option 3. It stayed close to the current levels although it did shrug the recently broken trend line after the USD sales figures.If FOMC gives us a surprise we could see 0.668 or even lower. If it stays within expectations we could see a slower move to those levels but overall I am expecting the tone to be bearish for the last part of the week.
Order cancelled
So much for dollar strength...Note
Double top formed. We might see lower after all.
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