- NZD/USD runs into a critical support area ahead of the RBNZ.
- Bears may wish to wait for the outcome before committing to the downside at this juncture.
As per the following article, NZD/USD Price Analysis: Bears on verge of test of trendline support, the price has indeed moved to target as the greenback catches a bid in the Asian session.
The entry was signified at the 15-minute structure as follows:
Bears will have gained a 1:3 risk to reward ratio in the above outcome or possibly riding the impulse even further for higher reward.
However, at this juncture, it would be expected to see a correction back to test a potential structure on the daily chart as follows:
The Reserve Bank of New Zealand is due in a short while, so it is advisable to wait and see what the outcome of that meeting is before committing to the curremy one way or the other.
When is the RBNZ and how it could affect NZD/USD?