Chart Of The Day: NZDUSD’s “Falling Wedge” remains intact despite RBNZ rate cut

Wed, 08 May 2019 13:17

Wednesday's 0.25% rate cut from the Reserve Bank of New Zealand (RBNZ) failed to defy two-month-old "falling wedge" bullish formation on NZDUSD's daily chart. As a result, chances of the pair's pullback to 0.6600 become brighter. Though, a sustained break of 0.6630/35 resistance confluence including pattern resistance and 61.8% Fibonacci retracement could propel the quote theoretically towards 0.6840 with 0.6700 and 200-day SMA level of 0.6720 being intermediate halts.

On the downside, a daily closing beneath 0.6530 negates the bullish pattern and can further fetch prices to 0.6500 and then to October 2018 bottoms near 0.6425.

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