Kiwi Dollar Extends Rally Ahead of US Interest Rate Announcement
Jul, 29th 04:23
The price of the Kiwi Dollar rose against the Greenback on Wednesday, for the fourth day in a row, to more than 0.6700 before the US interest rate announcement which is due later in the New York session. The technical bias is bearish due to a Lower Low in the last wave on daily chart.
US Interest Rate Announcement
The US central bank is scheduled to announce its benchmark interest rate decision today during the New York session. According to the median projection of analysts, the Federal Reserve will keep the interest rate unchanged at 0.25% due to slower growth and lower than expected inflation. Investors keep a close eye on the interest rate announcements.
As of this writing, the pair is being traded around 0.6710. A support may be noted near 0.6620, the intraday low of yesterday ahead of 0.6495-0.6500, the confluence of psychological number as well as low of the last major dip as demonstrated in the following daily chart.
On the upside, the pair is expected to face a hurdle near 0.6790, the 23.6% fib level ahead of 0.6800, the psychological level and then 0.6972, the 38.2% fib level of the last major move. The technical bias will remain bearish as long as the 0.7230 resistance area is intact.
Binary Options Trade Idea
Considering the overall technical and fundamental outlook, buying the call options of NZDUSD appears to be a good strategy in the near term