The New Zealand dollar is challenging the intraday low at 0.6732. This is also the yearly low price point for the NZD/USD Forex pair.
Forex and financial market traders will be glued to the U.S. Federal Reserve Board on Wednesday. Their monetary policy arm, the Federal Open Market Committee (FOMC), will announce their monetary policy and interest rate decision. The Federal Reserve will also release a monetary policy statement and hold a press conference after their decision.
The Federal Reserve is not expected to make any changes to their monetary policy or interest rates this month. However, the Federal Open Market Committee is expected to announce they are speeding up reducing their monthly asset purchases.
The New York Fed will publish their monthly manufacturing index and the U.S. will also publish month retail sales numbers. The United Kingdom is releasing monthly consumer price index (CPI) data as well as their monthly producer price index (PPI). France will also publish their monthly consumer price index (CPI).
Daily New Zealand Dollar Technical Analysis
Looking at the above daily MT 4 price action chart, the New Zealand dollar has been under pressure since failing to break above the 10 day simple moving average. The NZD/USD Forex market is also retaining its bearish bias just above a falling trend line from early November. The MACD histogram is also looking bearish.
Also, the relative strength index (RSI) is moving into oversold territory. There is critical long term support lining up at 0.67 for the New Zealand dollar. The 2020 low price level at 0.6950 then comes into focus.
On the upside, the day simple moving average lines up near 0.6785 with the next upside level lining up at 0.6860. The next layer of resistance lines up at 0.6870 before 0.6980 coming into play. The key round number of 0.70 will be the next layer of resistance.