NZDUSD Triangle Pattern on the daily chart

Latest New Zeland macroeconomic figures are showing the economy is slowing down.

Employment Change (QoQ) (Q4) 0.1%
Labor Cost Index (QoQ) (Q4) 0.5%
Labor Cost Index (YoY) (Q4) 2.0%
Participation Rate (Q4) 70.90%
Unemployment Rate (Q4) 4.3%

BNZ, which is one of the most dovish central banks by stating that it will not increase any interest rates until the end of 2020, can continue to hold its dovish stance in the next week’s meeting with this data.

On the other hand, the FED is still the safest haven with its USD 2.5% interest rate even though its dovish stance.

Economic Calendar

The most important calendar data for the pair is undoubtedly RBNZ meeting on February 13th – No policy change is expected

If the negotiations between the US and China to be held on February 28th do not result in a market expectation, the market may switch to risk-off mode. This may be catalysed for new decreases in the pair.

Technically:

The pair broke the short term bullish trend line. We see a triangle pattern on the daily charts. The pair is likely to test the baseline of the triangle 0.66500. Breakout of the triangle will trigger the bearish move.

Invalidation level of the pattern is 0.69500.

Breakout Level is 0.66500

Targets will be:

0.6590

0.6550

0.6440