The New Zealand dollar continued to weaken against the greenback this week after Governor Wheeler’s dovish comments came along with the Reserve Bank of New Zealand Rate’s Statement after hiking rates to 3.50% during last weeks meeting. Weekly bias remains slightly on the downside as 21 and 55 EMA’s still show bearish continuation. However the pair seems to be in neutral mode in the early days of the week as MACD, SSRC and RSI oscillators shows bullish momentum is building up on the 4 hours charts.
We will be selling the rips whenever this pair buys back up. Selling opportunities should be monitored around the 0.8600 and 0.86500 resistance zones with the use of chart patterns and price action reversal strategies. More decline to 0.84041 supports is expected. A strong fundamental to be watched out for this coming week for the New Zealand dollar is the New Zealand Employment Change and Unemployment Rate.