NZD/USD: technical update
NZD/USD pared the recent gains and returned below $0.8100 following the verbal intervention of the RBNZ Governor Wheeler who promised to sell more NZD in order to support exports. On Wednesday the pair touched $0.8160.
We’ll remain in a wait-and-see mode until we get a clearer signal. Break below $0.8000 will be a strong selling signal and opens the way to $0.7910. Rise above $0.8220 would signal a bullish reversal. Given the dovish sentiment of RBNZ, the first scenario is more realistic, of course.
Chart. H4 NZD/USD