NZDUSD Triangle Breakout and Short Opportunity

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NZDUSD Triangle Breakout And Longterm Trade Opportunity

As we have mentioned in our latest NZDUSD forecast - see NZDUSD Forecast - the selling pressure on the pair remains.

According to the latest GDP data released today, New Zeland' Anual Growth eased from 3.2% to 2.6%. Markets are forecasting a 25bp cut in the Official Cash Rate in November 2019.

On the other hand, FED  lifted rates as expected by 0.25%, with the dot-plot now pre-announcing two probable rate hikes for next year, down from three previously.  The accompanying statement was hawkish as the Committee judged that risks to the economic outlook are roughly balanced, vs. the "appear to be balanced," from the previous statement.

In our previous forecast, our first target was 0.67500 and the pair is trading at 0.67270 as of writing.

As seen on the chart, the pair broke the triangle and pullbacks towards 0.67500 can be used as selling opportunities. Daily closings above 0.68200 would invalidate the pattern.

Our midterm targets  are:

0.6670

0.6590

0.6550

0.6440

0.6340

and the target of the formation 0.62200 ( SHS  Pattern on the weekly chart )

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