Comprehensive NZD/USD for 28th November, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the NZD/USD for 28th November 2023. 

NZD/USD Key Takeaways

• Economy does not support interest rate hikes: Although New Zealand’s inflation rate remains one of the highest among developed economies, tight monetary policy is slowing economic growth – unemployment is climbing, while consumption has been falling. 
• The interest rate decision of RBNZ: The investors’ focus will be on whether there are changes in the future interest rate path. In August, the Reserve Bank of New Zealand predicted that it would not make a slight reduction until the end of 2024. If the November forecast no longer predicts an interest rate cut in 2024, the New Zealand dollar may see a trend rise. 

NZD/USD Technical Analysis 

NZD/USD Daily Chart Insights

• Stochastic Oscillator: The indicator is currently oscillating in the overbought area. It implies that the current bullish trend is strong, but there is still a possibility of a correction. 
• Long-short conversion interval: The bottom pattern is established, and the overlapping price of the neckline and the 200-day moving average forms the long-short conversion interval. After the market price completely stood above the resistance yesterday, the exchange rate may rise rapidly today or pull back to test the neckline before choosing to rise. 

NZD/USD 1-hour Chart Analysis

• Stochastic oscillator: The indicator did not rise with the new high of the exchange rate, forming a top divergence pattern. It implies that there is some correction pressure on the current exchange rate. 
• Upper pressure: Connecting the two high points since November 14, the two-point extension line is exactly the suppression area that the exchange rate is about to face. The market may fall back after hitting the resistance. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 0.60889, 
• Bullish Scenario: Bullish sentiment prevails above 0.60889, first target 0.61166, second target 0.61347; 
• Bearish Outlook: In a bearish scenario below 0.60889, first target 0.60701, second target 0.60426. 

Conclusion