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NZDUSD : Moving Towards Negative Territory

NZDUSD : Daily Chart

NZDUSD faded away the bullish signal from the falling wedge pattern on the daily chart by breaking below the support trend line of the wedge and the key support at .8208. The pair extended losses after the Reserve Bank of New Zealand left the interest rates unchanged and signaled that the borrowing cost will remain on hold for some time. According to the bank the interest rates shall be on hold for a longer period of time after lowering the inflation forecasts to 1.4% in 12 months ending March 31 down from the 1.8% forecast in June. RBNZ Governor Graeme Wheeler also said that he expects a significant depreciation in the New Zealand dollar.

On the other US dollar continue to be supported even after the downbeat jobless claims data. Seems like investors are waiting for the Retail Sales and Consumer Sentiment Data for the guidance on the US economic growth before shorting the US dollar.

The immediate support the pair will be testing is at .8155. Declining below this support level will open the doors for the next support level at .8098. Also declining below the 200 day SMA will confirm the bearish trend on the pair and we might see some more losses on the chart.