Last Thursday, the Kiwi was our "Chart Of The Day," and we had highlighted the triangle that was forming in the range. Today, we broke lower, as the USD gained strength and took NZD/USD back to the .6900 level support. But now, with the RBNZ in a few hours, the risk could be building. The market has been buying the NZD currency, as the market is expecting a rate hike. But how many more hikes can we expect this year?
If the market feels the RBNZ is a "one and done" for 2021, we could see the pair drop a big figure to the July 2019 and September 2020 highs near the .6800 level. Bulls should be careful, especially after today's move. A move out of the June/August range lower would catch bulls off guard.