NZD/USD faces resistance
NZD/USD slipped back below the $0.8000 mark after having touched $0.8010 (monthly high) earlier in the day. Kiwi remains in an uptrend since July 5.
As can be seen from the daily chart, the pair has approached the bottom of the strong bearish Ichimoku Cloud. That is why the $0.8010 level is a strong resistance for the pair. However, one may also see, that the short-term Tenkan-sen is about to cross the longer-term Kijun-sen to the upside. If it happens, the bullish reversal of the pair would be fully confirmed. Next resistance lies at $0.8040 (50% Fibo) and $0.8140
On Thursday the Reserve Bank of New Zealand holds its monthly policy meeting. Analysts expect Wheeler to keep the official cash rate unchanged at 2.5%. Commonwealth Bank of Australia say kiwi may push higher if Wheeler maintains a positive view on the local economy.
Chart. Daily NZD/USD