This morning the NZD got a bit of a kick on the back of a stronger than expected CPI print. However what it couldn’t do is crack the 0.7200 mark. This is now the third time we’ve tried and failed to break through this resistance level and we are even putting in what appears to be a rather bearish candlestick pattern.
What this is telling me is that we are weak and I expect the NZD/USD to continue to decline. Overnight we saw some strength coming back into the USD and this will only add to the fall if we can get some follow through in early US trade.
I would be looking to sell the close of the candle if it ends up looking bearish which at this stage it appears to be. When we have positive news yet the market can’t break higher, that to me is a sign of underlying weakness.
Top 4 Brokers
