The RBNZ will announce their rate decision at 8 PM ET later today (Wednesday in NZ) with the expectations of no change in policy. There was earlier expectations for a hike by some, but those views have been tempered more recently. Nevertheless, the RBNZ is likely to remain more hawkish.
The price action of the NZDUSD has rotated lower from highs last week that saw traders briefly move above the 50% midpoint of the move down from the December high. That level comes in at 0.62028 and still remains as a target to get to – and though – if the buyers are to take more control. The current price is at 0.6163.
ON the downside, there is an old ceiling area between 0.6148 to 0.6159 that needs to be broken to increase the bearish bias. The price is testing that area in trading today. On a break below, it would shift traders focus toward the near converged 100/200 bar MAs on the 4-hour chart. Those MAs come in at 0.6128 currently.
Going into the decision, the market has rotated lower, but into support. Traders who like the NZD, this is an area to buy. Sellers – in contrast – would like to see the old ceiling down to 0.6148 (and now a floor) broken (and stay broken).
This article was written by Greg Michalowski at www.forexlive.com. Source