NZD/USD below 50-DMA, scope for further downside, stay short
RBNZ in its economic assessment report released today, called for further easing to address the problem of low inflation.
NZD/USD hits 1-1/2 month lows at 0.6951, has recovered slightly to currently trade at 0.6971 levels.
Downside in the pair also supported from the recent strong US data which has resulted in the rise in Fed rate hike expectations in 2016.
Technically the pair has broken below 50-DMA at 0.70 and we see scope for test of 100-DMA at 0.6915.
A violation there could take the pair to 0.6835 and then 0.68 levels.
Momentum studies are bearish, however, stochs are at oversold territory so some caution is advised.
NZD/USD hits 1-1/2 month lows at 0.6951, has recovered slightly to currently trade at 0.6971 levels.
Downside in the pair also supported from the recent strong US data which has resulted in the rise in Fed rate hike expectations in 2016.
Technically the pair has broken below 50-DMA at 0.70 and we see scope for test of 100-DMA at 0.6915.
A violation there could take the pair to 0.6835 and then 0.68 levels.
Momentum studies are bearish, however, stochs are at oversold territory so some caution is advised.
