NZD/USD has broken short term support 0.7680 after release of weaker expected CPI data.
New Zealand fourth quarter CPI data showed a quarterly drop in inflation of 0.2% well below the Reserve Bank of New Zealand 1-3% target. The decline in inflation has further lessened the chance of rate cut by RBNZ.
On the downside minor support is around 0.7620 and any break below will target 0.7450 (161.8% retracement of 0.76174 to 0.7888).
The pair’s minor resistance is around 0.7725 and indicative break above would extend gain to 0.775/0.7805.
Indicators (4 Hour chart)
CCI (50) - Sell
CCI (14) - Sell
Ichimoku- Sell
Recommendation: Sell NZD/USD around 0.7680, SL 0.7725, Target 0.760/0.745.
New Zealand fourth quarter CPI data showed a quarterly drop in inflation of 0.2% well below the Reserve Bank of New Zealand 1-3% target. The decline in inflation has further lessened the chance of rate cut by RBNZ.
On the downside minor support is around 0.7620 and any break below will target 0.7450 (161.8% retracement of 0.76174 to 0.7888).
The pair’s minor resistance is around 0.7725 and indicative break above would extend gain to 0.775/0.7805.
Indicators (4 Hour chart)
CCI (50) - Sell
CCI (14) - Sell
Ichimoku- Sell
Recommendation: Sell NZD/USD around 0.7680, SL 0.7725, Target 0.760/0.745.