❗ NZDUSD Chart Technical Outlook inflation expectation sends the pair into a nosedive, with support seen at 0.6239
Much lower-than-expected inflation expectations (exp. +3.3% actual +2.79%) from the Reserve Bank of New Zealand sent the single currency into a nosedive overnight.
Although we have seen a stalling in downward momentum, we would look for further mild losses.
Bespoke support is located at 0.6239 and 0.6232. We have a 261.8% extension level from the 0.6384 – 0.6328 move located at 0.6238.
With the NZD single currency basket now at support, there is scope for a corrective move to the upside from this support zone (0.6239-0.6232). However, with further gains expected in the US Dollar, the correction higher could be temporary.
The previous swing low of 0.6328 now becoming resistance. With bespoke resistance located close to this zone at 0.6323, I would look for an upside correction to stall in this area (0.623-0.6238
