The Reserve Bank of New Zealand interest rate remained unchanged, but the news alone about that were a powerful catalyst for a strong drop of the NZD against all other currencies.
After dropping for about 170 pips NZD/JPY reached a level which could technically be viewed as a diagonal support, and it could temporarily halt its descent.
If the pair breaks out below that trend line, however, the next support zone for the New Zealand currency is at 77.20 – 77.00.
Today is only Thursday, but we have to watch how the weekly bar will close – if the now forming bearish hammer is confirmed, we could expect the pair to continue its depreciation toward the local low at 75.50 in the medium term.
Good point, will keep it in mind!
ReplyDeleteGood posts, very helpful for all traders.
ReplyDeleteGood point. I'll keep a close eye on it.
ReplyDeleteI'll watch those levels, thank you.
ReplyDeleteGood to know, thanks!
ReplyDeleteGood insight.
ReplyDeleteExcellent Analysis! Thanks.
ReplyDelete