NZD/USD Forex Technical Analysis – Consolidating Ahead of Wednesday’s Major RBNZ Interest Rate Decision

The New Zealand Dollar is trading flat early Monday as prices continue to consolidate ahead of the upcoming Reserve Bank of New Zealand (RBNZ) interest rate decision on August 18 and the country’s reopening.

Additionally, the price action is being influenced by uncertainty over if and when the U.S. Federal Reserve will announce its plans for tapering of its economic stimulus. Meanwhile, the country continues to struggle with the Delta variant as it spreads through the Asia-Pacific region.

At 0:55 GMT, the NZD/USD is trading .7033, down 0.0006 or -0.09%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7089 will reaffirm the uptrend. A move through .6902 will change the main trend to down.

The minor trend is also up. A trade through the minor top will indicate the buying is getting stronger. A move through .6969 will change the minor trend to down.

The nearest support is a 50% level at .7027. This is followed by a series of retracement levels at .6985, .6960 and .6924.

On the upside, the resistance is a short-term retracement zone at .7099 to .7150. The latter is also a potential trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

The direction of the NZD/USD early Monday is likely to be determined by trader reaction to the 50% level at .7027.

Bullish Scenario

A sustained move over .7027 will indicate the presence of buyers. The first potential upside target is .7062. Taking out this level will indicate the buying is getting stronger. This could trigger a surge into a series of resistance levels at .7089, .7099 and .7105.

The upside momentum could begin to increase over .7105 with .7150 the next potential upside target. This is also a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under .7027 will signal the presence of sellers. This could lead to a labored break with potential downside targets coming in at .6985, .6960 and .6924.