The New Zealand Dollar is trading steady-to-lower early Wednesday ahead of a U.S. Federal Reserve meeting where policymakers are expected to reiterate their dovish policy stance despite rosier economic projections.
At 05:47 GMT, the NZD/USD is trading .7175, down 0.0015 or -0.21%.
Economists expect the Fed to forecast the U.S. economy will grow in 2021 at the fastest rate in decades, with unemployment falling and inflation rising, as the COVID-19 vaccination campaign gathers pace and a $1.9 trillion relief package washes through to households.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7099 will reaffirm the downtrend. The main trend will change to up on a move through .7465.
The minor trend is also down. A trade through .7241 will change the minor trend to up. This will shift momentum to the upside. A trade through the .7151 minor bottom will indicate the selling pressure is getting stronger.
The main retracement zone is .7170 to .7234. This zone is controlling the near-term direction of the NZD/USD.
The minor range is .7099 to .7241. Its retracement zone at .7170 to .7153 is potential support.
The short-term range is .7465 to .7099. Its retracement zone at .7282 to .7325 is potential resistance. Since the main trend is down, sellers are likely to come in on a test of this area.
Daily Swing Chart Technical Forecast
The direction of the NZD/USD on Wednesday is likely to be determined by trader reaction to .7170 and .7180.
A sustained move under .7170 will indicate the presence of sellers. The first downside target is the support cluster at .7153 to .7151.
Taking out .7151 could trigger an acceleration into the next support cluster at .7099 to .7096.
A sustained move over .7180 will signal the presence of buyers. If this move creates enough upside momentum then look for a possible rally into .7234, followed by .7241. The latter is a potential trigger point for an acceleration into .7282 to .7325.