Pair trades in a channel
The New Zealand 2 year inflation expectations will be released for the 1Q. There is no expectations for the inflation expectations ; ). Last quarter the number came in at 2.02%. That was down from 2.09% in the 3Q. The high in 2017 was at 2.17%. The 1Q came in at 1.92%.
Technically, the price of the NZDUSD is trading within an upward sloping channel. The price is closer to the lower trend line at 0.7261 and moving higher.
On the topside, the trend line cuts across at 0.7317. With the price at 0.7274, the lower trend line is obviously the easier target.
Should the number come in lower than the 2% level from last quarter, the next lower target comes in at 0.7255 (that was a broken trend line from the Feb 2 high), and then the 100 hour MA at 0.72407. Below 0.72407 and selling should intensify, with 0.7231 (low yesterday) and the 0.7200 level as the next targets.
On the topside, the 50% retracement of the move down from the Jan 31 high comes in at 0.7297. Earlier in the day, the price moved above that level on the way to the high for the day. That high took out the topside trend line, but quickly failed. The high price reached 0.7314, not too far from the topside channel trend line at 0.7317.