The New Zealand Dollar (NZD) is a focus on trading this week in line with the decision of the Reserve Bank of New Zealand monetary policy meeting (RBNZ) which will be voiced at the beginning of the Asian session Wednesday.
The market expects RBNZ to raise interest rates at the November edition meeting which will indirectly support the main central bank entering the phase of tightening of the policy policy.
The current market sentiment was overwhelmed by the risks of COVID-19 in some major economic countries and continued to have positive implications to USD as safe-haven.
Looking at the NZD / USD currency pair price chart, the price movement has dropped around 50 pips on the close of trading last week to test the 0.70000 support zone and continue to move horizontally.
It seems that the support zone remains in support of the price movement to display a slight increase in the opening of this week's trade in the Asian session and entered the beginning of the European session today (Monday).
The horizontal pattern is still visible and the price seems to remain below the obstacle level of Moving Average 50 (MA50) which is usually used as an early signal to the bearish trend.
Price movements will see an attempt in testing the SUPPORT BECOME resistance 0.70500 and it is expected that it is possible to break for the price of climbing to reach the SBR zone of 0.71000.
The higher surge will then eliminate the horizontal pattern exhibited since the beginning of last week for the expectation of prices to return to the bullish trend.
But the ability to move the price on the NZD / USD chart is also impossible for which will show the price past the support zone that often helps a surge at 0.70000.
The drastic depreciation below the support zone will record a new low level within 6 weeks with expectations to reach the next support zone around 0.69500.
