NZD/USD - NZD/USD On Possible Correction - 08/08/2016 (GMT)

This week the Reserve Bank of New Zealand will have its monetary policy and is widely expected to end with a rate cut to 2.00% from 2.25%. During the previous week, the kiwi pair plunged more than 0.8% and met the 0.7080 price level after the rebound on 0.7250 price level.

Technically, the NZD/USD pair is currently trading above the 100-weekly SMA and below the 50-daily SMA. On the 4-hour chart, the price is moving between the three SMAs (50-SMA, 100-SMA, 200-SMA) and those obstacles will be a strong difficulty for the continuation of the ascending move. The pair is still trading above its uptrend line and a successful penetration below the 100-weekly SMA will be a good chance to retest the 0.6980 support level or moreover the bullish trend line. On the other hand, a failed attempt will expose the price until the 0.7250 resistance level. On the daily chart, the MACD oscillator is following a positive path but is approaching its mid-level. In addition, the RSI indicator is falling and dropped below the 50 level.