Focus on NZDUSD today – 27th FEB 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the NZDUSD for 27th February 2024. 

Key Takeaways 

• RBNZ upcoming meeting: Reserve Bank of New Zealand (RBNZ) will hold its first monetary policy for the year this Wednesday. The market expects RBNZ to keep its interest rate unchanged although inflation remains at the high levels of 4.7% last month. If RBNZ chooses to adopt the “wait-and-see” approach, New Zealand dollar may undergo short-term weakness.  
• Long-term appreciation: RBNZ is unlikely to cut interest rates based on the market consensus. Thus, divergence in monetary policy between RBNZ and Federal Reserve may open more room for further downside.  

Technical Analysis 

Daily Chart Insights 

• Stochastic oscillator: The indicator formed bullish signal in the overbought reigon, suggesting possible downside bias for short-term. At present, the signal line which has not left the overbought threshold suggests uncertainty. Thus, it is wise to wait for further signal before entering the market.  
• Resistance area: The pair pulled back from 65-day moving average, which coincides with the upper region of ascending channel. Multiple short-term support may prevent the pair from extending its losses further. It may open further downside bias if it falls below these support levels.  

1-hour Chart Analysis 

• Stochastic Oscillator: The indicator issued a short signal near the 50 midline yesterday, suggesting that the bulls are at a disadvantage in the short term. If the indicator cannot cooperate with the exchange rate to quickly fall to the oversold area, a bottom divergence pattern may be formed, and the New Zealand dollar’s decline will be limited. 
• The indicator formed a short signal near the 50 midline, suggesting further bias towards the downside. If the indicator persists to illustrate bearish signal prior to reaching the oversold region, the pair may force the formation of divergence in the indicator which may limit further downside ahead.  
• Resistance above: The pair formed a double top last week, with the green trendline acting as its neckline. For the time being, we will focus on its ability to close above 33-period MA line (red). A successful close will suggest further upside towards the neckline in the mid-term. Otherwise, the pair may enter the consolidation phase and thread lower thereafter.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 0.6157, 
• Bullish Scenario: Bullish sentiment prevails above 0.6157, first target 0.6202, second target 0.6215; 
• Bearish Outlook: In a bearish scenario below 0.6157, first target 0.6136, second target 0.6123. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. 

Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

—– 

Legal Documents 

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius. 

Copyright © 2023 Ultima Markets Ltd. All rights reserved. 

Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.