The New Zealand Dollar seems to be experiencing some pressure since investors are less wiling to risk. ABS experts assume that this change in investors’ minds is connected with the recent decline shown by the Dow Jones index.
According to the experts, investors stopped to estimate the existing situation in the US stock market. The pause led to lower demand for riskier assets. This means that the current weakness of the New Zealand Dollar may well continue amid further profit-taking.
At this point, the near-term prospects of the currency are said to depend on the forthcoming FOMC meeting minutes. The release is scheduled for Thursday.
Forex
According to Masterforex-V Academy, the New Zealand Dollar is currently retracing from the long-term rally against the US Dollar. However, the experts report that NZDUSD is forming wave А/В of level H8.
A further rally (above the 0.8542 high) will probably encounter resistance around 0.8584, 0.8674. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 0.8167 (as shown below). If this is the case, the closest levels of support will be found around 0.8129, 0.8078, 0.8032/24.
