Firmer RBNZ Inflation Expectations for Q4 propels NZDUSD towards confirming falling wedge bullish formation, extending run-up towards the 200-SMA level of 0.7070 by the press time of early Thursday. It should be noted, though, that the 38.2% Fibonacci retracement (Fibo.) of September-October upside, near 0.7085, adds to the upside filter and may probe the bulls before directing them to the monthly peak surrounding 0.7200. In doing so, the RBNZ’s rate hike will be crucial to watch.
Meanwhile, failures to keep the wedge breakout could drag the quote back to 61.8% Fibo. level near the 0.7000 threshold. Following that, a six-week-old horizontal support zone near 0.6980 and the wedge’s support line close to 0.6970 will test the NZDUSD bears before directing them to 78.6% Fibonacci retracement level and September’s bottom, respectively near 0.6930 and 0.6860. To sum up, NZDUSD flag bullish bias before the key RBNZ interest rate decision.
Meanwhile, failures to keep the wedge breakout could drag the quote back to 61.8% Fibo. level near the 0.7000 threshold. Following that, a six-week-old horizontal support zone near 0.6980 and the wedge’s support line close to 0.6970 will test the NZDUSD bears before directing them to 78.6% Fibonacci retracement level and September’s bottom, respectively near 0.6930 and 0.6860. To sum up, NZDUSD flag bullish bias before the key RBNZ interest rate decision.