Double Bottom and 200SMA Hold the Kiwi

With the rate decision looming for the RBNZ on Wednesday, there’s an expectation that the Official Cash Rate in New Zealand will drop from 3.00% to 2.75%. The sell-off in the kiwi is reflecting that assumption and the pair has made a double bottom along 0.7345 and today’s 0.7339 session low.

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The daily NZD/USD with my GRaB MT4 plug-in and 34EMA Wave

The trendline breakdown has continued and the red GRaB candles have indicated a dominant bearish market sentiment and trend since February 11. The 200 period SMA (currently at 0.7387) is not acting as a support level but there’s no denying the (current) gravitational pull from this key indicator.

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