FXStreet – A decline to the area around 0,6770 seems to have to Momentum to be lost, declared the FX strategists of the Japanese UOB Bank.
The new Zealand Dollar (NZD) fell in response to today’s monetary policy Statement from the Reserve Bank of New Zealand (RBN) like a stone. The decline appears to exaggerate, but currently there are still no signs of stabilization. A Test of primary support at 0,6800 would not be surprising. Only a recovery in the share price over 0,6865 would mean that the Pair has stabilized.
The strong loss of value of the NZDs this Morning was clearly not expected. The decline seems to be self-reinforcing. Lower rates we do not expect yet. As long as the NZD may recover back on 0,6890, the pressure on the bottom, but the chances of a continuation of the downward movement in the direction of the next support at 0,6770 are not really high.
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** FXStreet News Editorial, FXStreet**