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- There were large stops reported yesterday below 1.6760 but interestingly the overnight low was exactly 60. This suggests to me that there is a large bid at this level with stops directly below;
- Sell orders reported now 1.6810 (modest size).
There is a 50% retracement level and an hourly high coming in at the same level.
Once again, thanks to our hedge fund insider in the FXWW chatroom for posting the following information from WestPac.
The Reserve Bank of New Zealand increased the cash rate to 3.00%, as unanimously expected by economists and financial markets. In its statement, the RBNZ reiterated the main message that the OCR
The NZD is still bouncing around after the RBNZ but the short-term bulls seem to have the upper hand for now. Levels to watch in the crosses are as follows:
- NZD/JPY resistance at 88.55;
- AUD/NZD reported bids at 1.0725/35;
- No exact levels in GBP/NZD but I've seen two sell signals from professional traders
As expected change in the base rate to 3.00% and the comment that inflationary pressures are increasing has caused the NZD/USD to pop up towards .8620. I still like the buy-dip play in AUD/NZD and am looking for entry levels near 1.0735.
The aforementioned stops above .8230 were easy pickings after the Monetary Policy Committee of the Bank of England delivered their latest. The big levels to watch in cable are 1.6760 on the downside, with stops tipped below there, and of course 1.6850 where barriers are touted.
I do not expect EUR/USD to move too far away from current levels over coming sessions. All the action will be in the crosses with pairs like EUR/AUD and EUR/GBP already leading the way today.