Good morning Traders!

Yesterday, the Reserve Bank of New Zealand surprised the market with a bigger than expected interest rates increase of 0.5% to 5.25% the move saw the Kiwi dollar strengthening against many of it’s trading partners, and in particular the Aussie dollar, where the Reserve Bank of Australia chose to keep rates put at 3.6%


The market has been in a consolidation pattern failing to break either the resistance level at 1.08, or the support level at the 1.0670 area.

The divergence in outlook between the RBA and the RBNZ saw the market breaking and closing below the support level of the 1.0670 area, confirming a downtrend on the 4hr chart, and a Lower Low on the Daily chart.

Drawing the Fibonacci retracement of the latest 4hr move, has the 61.8% retracement in the area of this support level, and clustering with the last buyers spike. I’ll be watching this area for a potential pullback and continuation of the selling momentum.

Happy Trading!

Tamar Mehr

Tamar Mehr is a professional trader, neuropsychological trading mentor, FXGlobe Ambassador, and decision-making expert. She’s based in Brisbane, Australia.

Trading Advice Disclaimer:
Our Ambassador’s Daily Picks are not trading advice. These are informational articles covering the events which happened in the market already & scheduled events which are scheduled to happen in the Economic & Earnings Calendar.

General Risk Warning:
Trading leveraged products such as Forex and CFDs carries a high level of risk thus may not be appropriate and/or suitable for all investors. The investment value can both increase and/or decrease and the investors may lose all their invested capital. The content of this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Under no circumstances shall the Company or affiliated Companies have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to leveraged products.