NZD/USD is a downtrend with high volatility, lasting more than 1 year. This week, the focus was on the RBNZ meeting, at which the regulator refused to change the interest rate and made it clear that it was more likely to reduce it in the future. As a result, the New Zealand dollar began to lose ground, unable to withstand the pressure. Macroeconomic reports also contributed to this, as retail sales fell amid a recession in the economy.
This is not to say that everything is great with the economy in the United States. There is also a deterioration in macroeconomic indicators, but the USD is held due to a decrease in the likelihood of changes in the rate against the backdrop of high inflation, which contributes to the demand for the American currency. However, despite the dubious perspectives for the rate growth, the USD wins in this confrontation, since it is considered safer compared to the NZD, which also depends on a weakened Chinese economy.
As we can see on the chart, during 2023 quotes were in a downward trend, and at the end of the year there was a strong price correction with testing of the resistance line, after which quotes turned down. This is a classic case and a signal of the end of an upward movement. Next we will see a resumption of the downward trend, despite the weakening of the USD. Most technical analysis tools confirm our forecast, so today we open the deals to Sell without any doubt.
