New Zealand dollar against the US dollar 13/4/2022

This article includes a technical analysis of the New Zealand dollar pair, which helps determine the direction and know the trading range for this pair, and this analysis includes the weekly, daily and four-hour time frame, as well as a basic look at the most prominent of what was mentioned in the interest statement issued by the New Zealand Reserve

Weekly Time Frame

The New Zealand dollar against the US dollar is still trading below the area between 0.74319 and 0.75824 since the date of September 15, 2016, and the last time it touched this level on February 22, 2021 it bounced from this area strongly forming a candle with a negative pattern, which indicates a bearishness, And now the pair is retracing in a bearish tunnel respecting the oblique resistance in the chart below

Daily Time Frame

On the daily chart, this pair rose from the level of 0.65281 to touch the resistance line on the weekly frame, as well as a supply area located at the level of 0.70313, and when it touched it, it bounced down strongly forming a candle with a negative pattern, which confirms the negative scenario for this pair and the importance of the resistance line on the frame weekly
The trend is still bearish, and the long-term target is at 0.65281, i.e. the previous bottom, and the negative scenario on the daily frame remains valid until breaching the resistance area at 0.70313 and closing a candle on the daily frame above this resistance.
Note: When closing a daily candle above the resistance area, traders should monitor the weekly frame to make sure if it was a false breakout, and the confirmation signal is to close a candle on the weekly frame above this area as well and the oblique resistance line

Four hour Time Frame

This pair must maintain the level of 0.69019 in the event that the bearish trend is maintained, and in the event of breaching this level and closing a candle on the four-hour frame above it, a reversal signal will be formed that supports the rise again for this pair.
As for maintaining the 0.69019 level, it supports the bearish trend in the medium term. The first target is located at the 0.67420 level, which represents an important support line, and the second target is located at the 0.66627 level

Highlights of what was mentioned in the Reserve Bank of New Zealand's interest statement this morning

Raise the interest rate to 1.5%
Continue to tighten monetary policy at a better pace
The level of global economic activity continues to generate mounting inflation pressures, which have been exacerbated by ongoing supply disruptions in large part driven by the coronavirus outbreak.
The Russian invasion of Ukraine dramatically increased these supply disruptions, causing commodity and energy prices to soar
The pace of global economic activity continues to slow
There is a high level of uncertainty caused by the ongoing effects of the coronavirus
The fundamental strength of the New Zealand economy continues to be underpinned by sound balance sheets, continued financial support, and strong export earnings
High vaccination rates across New Zealand help reduce the disruption caused by outbreaks of the Omicron mutant
Escalating global economic uncertainty and inflation have dented consumer confidence
Economic capacity remains under pressure, with a wide range of indicators highlighting domestic capacity constraints and persistent inflation pressures
Employment is above the maximum sustainable limit and labor shortage affects many companies
The Reserve Bank of New Zealand's core inflation measures are around 3% or more
Inflationary pressure is further amplified by the current high prices of energy and imported goods, which drive headline CPI inflation
The Reserve Bank of New Zealand will remain focused on ensuring that the current high consumer price inflation does not become an integral part of long-term inflation expectations

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