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NZDUSD : Falling Wedge Pattern Might Fade Away Selling Pressure

NZDUSD : Daily Chart

NZDUSD seems like consolidating within a falling wedge pattern ahead of the RBNZ monetary policy statement today. On the daily chart, we can see that the pair is currently testing the key support at .8208 and might rise from this level. However if the pair rise it will again face resistance from the resistance trend line of the wedge. A falling wedge pattern gives a bullish signal and accordingly the pair might break the resistance and rise above. If the pair breaks the resistance trend line, the next nearest resistance it may find at .8309.A decline below the support trend line of the wedge or the support at .8208 will fade away the bullish signal and the pair will continue to decline. A break below the support at .8208 will open the doors for the next support level at .8116.

Although the market is currently looking for the RBNZ statement but the demand for US dollar continues to weigh amid the expectations that Fed will increase the interest rates soon and will wind up the easing program in the month of October. There is a selling pressure on the currencies against US dollar across the market.