Ahead of the RBNZ rate statement, the kiwi dollar remains under pressure against the greenback. The cross is trading near a 6-year low. Last week, the cross hit a low of 0.6498. This week, the cross managed to get above this level. The cross has been edging higher for 3 consecutive days ahead of major events.
Across the board the commodity space is the worst performing this year. A fall in milk prices depressed the kiwi. Most economists expect another rate cut by RBNZ. We can expect another 25bps rate cut to 3.0%.
The 20Dsma is found at 0.6693. Whenever the cross makes an attampt to touch the 20Dsma, the results will favor bears. We can observe 3 occasions in the daily chart.
The cross formed a double top at 0.6653 and other resistance lines are seen at 0.6685. Intraday support is found at 0.6590 and 0.6560. The buyers sl is found at 0.6550. We recommend fresh selling below 0.6550 with targets at 0.6530 and 0.6510. On the higher side, buying is available above 0.6700 with targets at 0.6740 and 0.6770.
The material has been provided by InstaForex Company – www.instaforex.com