Weekly Trade Idea On NZD/USD

For the week Feb. 22-26, 2021

Key event: NZD. Interest Rate Decision

RBNZ Interest Rate Decision is announced by the Reserve Bank of New Zealand. If the RBNZ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the NZD.

We expect a similar reading to the previous lecture.

We do not expect this announcement to be relevant for the behavior of the NZD against other currencies during the week. More likely the technicals will be predominant. Only a very unexpected final data would affect the price action.

Key Levels:

• Resistance  0.7320, 0.7400.
• Support    0.7150, 0.7000

Trend NZD/USD:

Bullish

Price broke last week a tight indecision range and closed on the upper ranges close to a resistance level.

Call to Action/Trade Idea

We will look for any opportunity to join the bullish trend with a target on the next resistance levels. The previous resistance level is now important support.