NZD/USD analysis | Nov 11, 2019
As per risk part of my previous analysis, NZD has technically turned bearish because the 3-drive has been fully validated as price broke below previous swing low.
We can target next support that is FIB61.8 of the whole swing up. Set TP 2.0 pips + spread above FIB61.8.
Risk: RBNZ Official Cash Rate and statement is due to release at 8 p.m. EST, Nov 12 ( 2 p.m. NZ time, Nov 13). 60% of analysts all over the globe are expecting a rate cut to 0.75% but 40% analysts including Westpac are expecting no rate cut and similar statement to that of Sep 25.
This uncertainty led NZD to a new low in last week and may continue to weigh on it more because professional traders sell during uncertainty.
Nevertheless, profit taking from sell positions ahead of the news may push NZ a bit higher; therefore current sell position has tight stop and we should move SL to BE as soon as we get +15.0 pips floating.