NZD/USD consolidated in 1 cent range before RBNZ

NZD/USD is consolidated in above the mid-point of the 0.71 handle and awaits the RBNZ tomorrow.

NZD/USD has been in recovery mode since the lows post the nonfarm payrolls last week down at 0.7087 and reached a high of 0.7180 in overnight trade. The price is now consolidating as we await the outcome of the RBNZ tomorrow that is tipped to follow suit of the RBA and cut interest rates. "Remains resilient, even a day out from an almost certain RBNZ rate cut. In  a neutral state between 0.7100 and 0.7200," explained analysts at Westpac. Their 1-3 month view is based on the RBNZ’s easing cycle combined with the Fed tightening in December should push the NZD lower towards 0.69 during the months ahead, although recent BOE and BOJ easing have made the NZ.

The weaker the economy is, the more jobs the US economy seems to create?

How volatile has NZD/USD been?

Hourly 2-Standard Deviation Volatility Bandwidth is currently 70 pips, and has been expanding, while the ATR (14) is currently 14 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 359 pips and shrinking. The average movement for the current hour has been for 14 pips per hour, over the last four weeks. Meanwhile, 1:00-2:00 GMT represents peak for volatility, with an average movement of 28 pips over the same period.

What price levels and patterns have to be considered?

With spot trading at 0.7167, we can see next resistance ahead at 0.7174 (Weekly Classic PP), 0.7175 (Daily High), 0.7182 (Yesterday's High), 0.7183 (Daily Classic R2) and 0.7219 (Daily Classic R3). Support below can be found at 0.7166 (Daily Open), 0.7163 (Hourly 200 SMA), 0.7160 (Daily Classic R1), 0.7159 (Daily Low) and 0.7155 (Hourly 100 SMA). Looking to candlestick patterns, we can see a Piercing Line formation on the 1-hour chart.