A nice opportunity to go short in NZDUSD in the medium term
Fundamental Analysis:
My expectations for the NZD is neutral in the long term, three month after cutting rates the RBNZD are most likely to leave their monetary unchanged because they made a significant progress with the CPI 0.02%.For the USD my sentiment in the long term is bullish because the Fed's forecasts from their December meeting suggests that 3 rate hikes are likely in 2017 with Fed Fund futures prices suggesting the first of which is likely to be announced in June.
Sentiment Analysis:
By the data provided by the COT, the sentiment is neutral because the difference between the non-comercial (short and long) is very small.
Technical Analysis:
There is a bear 5-0 harmonic pattern with the Elliot wave theory.
My expectations for the NZD is neutral in the long term, three month after cutting rates the RBNZD are most likely to leave their monetary unchanged because they made a significant progress with the CPI 0.02%.For the USD my sentiment in the long term is bullish because the Fed's forecasts from their December meeting suggests that 3 rate hikes are likely in 2017 with Fed Fund futures prices suggesting the first of which is likely to be announced in June.
Sentiment Analysis:
By the data provided by the COT, the sentiment is neutral because the difference between the non-comercial (short and long) is very small.
Technical Analysis:
There is a bear 5-0 harmonic pattern with the Elliot wave theory.