Later this week on Thursday 11th June sees the latest decision by the Reserve National Bank of New Zealand. This will be much watched given recent weakness in the NZDUSD spot rate, which we look to continue to sees downside pressures into this event (and likely after).
NZDUSD Bearish trend re-energized
We stated in our recent reports that the late May acceleration in the bear trend through the prior 2015 cycle low at .7176 leaves early June risks still to the downside.
And also that we see a downside bias for .7091; break here aims for .7069, maybe closer to .7000.
The break below .7069 leaves the bias still lower for Monday and this week.
- We see a downside bias through .7022 for .7000; break here aims for the key .6988/49 area.
- But above .7065 opens risk up to .7100, maybe closer to .7152, which we would look to try to cap.
Short/ Intermediate-term Outlook – Downside Risks:
- We see a negative tone with the bearish threat to .7000.
- Below here targets .6988/49 and .6870, with threat lower for .6562.
What Changes This? Above .7272 eases bear risks; through .7396 signals a neutral tone, only shifting positive above .7564.