FxWirePro: Kiwi weak heading into RBNZ tomorrow, good to buy AUD/NZD dips
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 ther…
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
