- AUD/NZD slightly bid in the Asian session up around 0.25% as we head into the RBNZ policy meet tomorrow.
- RBNZ is widely expected to cut rates at tomorrow’s meeting by 25bps, to 2.50 percent. In the event it does cut there will likely be a “knee-jerk step down in the Kiwi.
- Falling wedge pattern seen on charts, the pair has taken trendline support at 1.0835 and edged higher, scope for retest of 1.0945 (23.6 % Fib of 1.0496-1.1086 rise).
- Daily techs show Stochs are at oversold levels, some unwinding likely, RSI is also biased higher.
- The pair is currently trading at 1.0890, with day’s high at 1.0899 and lows by 1.0840, immediate resistance is seen at 1.0908 (daily Kijun) ahead of 1.0944(daily Tenkan.
- Minor support lies at 1.0859 (38.2 % Fib of 1.0496-1.1086 rise), and further below strong trendline support is seen at 1.0835.
Recommendation: We find it good to buy dips around 1.0875, SL: 1.0835, TP: 1.0945
The material has been provided by InstaForex Company – www.instaforex.com