NZD- New Zealand dollar continues to test the 0.60, focusing on trade negotiations and the Federal Reserve's interest rate meeting

The Reserve Bank of New Zealand will release its semi-annual Financial Stability Report on Wednesday; it is expected to cut interest rates by another 25 basis points at the end of this month and three more times this year. Regarding the trend of New Zealand dollar against U..S dollar, the exchange rate has continued to test the 0.60 in the past two weeks, but has repeatedly failed to make a clear breakthrough. It should be noted that if it clearly breaks below the 0.59 level in the future, there will be a chance of triggering a peak and falling trend; and the chart shows that the RSI and stochastic index have turned downward, and it is expected that the New Zealand dollar will have a higher chance of adjustment. Calculated by the golden ratio, the retracement levels of 23.6% and 38.2% are 0.59 and 0.5820, and the extensions to 50% and 61.8% are 0.5755 and 0.5690. The largest support reference level is 0.56. As for the upward direction, we will continue to focus on the 0.60. If it breaks unexpectedly, it will extend to 0.6150 or even 0.62 levels. After that, we will focus on the high of 0.6378 on September 30 last year.

Forecast range:
Resistance 0.6000** – 0.6150 – 0.6200 – 0.6378
Support 0.5900 – 0.5820 - 0.5755 – 0.5690 – 0.5600

Focus:
Wednesday: New Zealand's first quarter unemployment rate (06:45)

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