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Past performance is not a guarantee of future results. Please remember that technical analysis is only a tool for trading and even targeted analysis is no guarantee of profits. Forex trading carries a substantial risk of loss and only discretionary capital should be used in trading.

Forex Trading: NZDUSD testing key support again

Posted by Greg Michalowski on Fri, 07/18/2008 - 10:49am in

Yesterday the NZDUSD dipped below the 50% retracement and the 200 hour moving average but bounced back above the key levels.  Now, the two indicators are at the same level of 0.7622.  The level is being tested now.  I expect support there. 

Next Wednesday evening the Reserve Bank of New Zealand will meet to discuss Monetary Policy.  The expectation is for no change in rates.  If there is a surprise it would be a cut and/or dovish comments as the economy is slowing and rates are overly restrictive despite the rise in inflation.