NZDUSD May Be On The Move After RBNZ Keeps Rates Steady
The left daily chart shows the NZDUSD pair in the weak area, with the Bollingers starting to expand. This, after the RBNZ kept rates steady at 0.25% (market forecast was for a hike of 25bps). The right hourly chart shows the EMA in bearish formation, with the faster green below the slower orange. Moreover, there is angle and separation which denotes momentum. The stochastic has turned negative too. For, the momentum to continue, we are looking for stochastic to move below 20 and hold (blue arrow). If it is able to do this, an underlying momentum push may be present. We do note that the FOMC meeting minutes are due for release at 6:00 pm GMT, which may affect dollar pairings. Trend following indicators may be useful in this case as a potential exit tool. Stop above hourly resistance in conjunction with risk management techniques.
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