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NZD/USD trips stops below 0.82 after RBNZ

FXStreet (Bali) - NZD was initially sold but some strong demand was noted at the lows, following the RBNZ policy decision, in which the Central Bank stated that it is prudent to undertake a period of monitoring and assessment before considering further policy adjustment, although also noting that further policy tightening will be necessary.

NZD/USD dipped to a new 7-month low at 0.8180 from 0.8220/25, with market sources reporting sizeable stops being tripped below the 0.82 handle. The say goes that 'the trend is your friend', and at the moment, from a day and intraday perspective, the bears continue in full control of the price, so expect recoveries to keep facing plenty of grateful sellers to join the USD bandwagon.

From a technical perspective, the slide below 0.82 paves the way for further losses in coming sessions, with no obvious support until 0.8060/80 or thereabouts. While rebounds in between seeking liquidity are to be expected, the sharpness of the fall off July highs at 0.88 suggests that sellers should be hiding on shallow bounces, with 0.8210/15, 0.8240/50 and 0.8265/70 areas where clusters of offers should be found.

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