28 Apr 2016
NZD/USD shorts squeezed on bizzar rally post RBNZ
Markets had been bias towards an 'on hold' outcome from this RBNZ's meeting around where the Central Bank had previously cut the cash rate to a record low of 2.25% last month.
NZD/USD was pressured lower on the back of the FOMC earlier, but has caught a strong knee-jerk bid and scored the highest level since 21st April in a 110 pip rally from the lows of 0.6823 to 0.6919 on the same 5-min stick post the release and despite the dovish statement where a further fall in NZD is said to be appropriate and that further easing may be needed. The statement was dovish yet the bird skyrockets.
NZD/USD levels
NZD/USD is through the 50 sma on the 4hr sticks and exceeding 21st April highs and remains robust as the minutes tick by after the release, despite the dovish outlook from the RBNZ. 0.6980 is the next target as the 20th ofApril high. While one can only imagine that the market is very thin over this release and positions were squeezed out on stops, a reversal of the move could put the bullish channels support into jeopardy and the 50 dma at 0.6784 is key support.
NZD/USD was pressured lower on the back of the FOMC earlier, but has caught a strong knee-jerk bid and scored the highest level since 21st April in a 110 pip rally from the lows of 0.6823 to 0.6919 on the same 5-min stick post the release and despite the dovish statement where a further fall in NZD is said to be appropriate and that further easing may be needed. The statement was dovish yet the bird skyrockets.
NZD/USD levels
NZD/USD is through the 50 sma on the 4hr sticks and exceeding 21st April highs and remains robust as the minutes tick by after the release, despite the dovish outlook from the RBNZ. 0.6980 is the next target as the 20th ofApril high. While one can only imagine that the market is very thin over this release and positions were squeezed out on stops, a reversal of the move could put the bullish channels support into jeopardy and the 50 dma at 0.6784 is key support.