Since last week, the NZD/USD pair has been actively declining, currently testing 0.5676 (Murrey level [1/8]) under pressure from monetary and geopolitical factors.

The New Zealand dollar is trading flat in the NZD/USD pair during the Asian session, consolidating near 0.5740, supported by macroeconomic statistics.

Growth is possible.

On the daily chart, a downward correctional wave of the highest level B ended, and the upward wave C and the first entry wave (1) of C started. Now, the first entry wave of the lowest level 1 of (1) and the correctional second wave 2 of (1) have ended. If the assumption is correct, the NZD/USD pair will grow within the third wave 3 of (1) to the area of 0.6125–0.6380. In this scenario, the critical stop loss level is 0.5726.

On the four-hour chart, a large Bullish Flag pattern appeared, form which the price exited at 0.5832 with a potential target at 0.5909 and higher: within its framework, in the range of 0.5800–0.5832, one can note the formation of the Hammer, Bullish Engulfing, Bull Counterattack Line and Three Advancing White Soldiers patterns, indicating the activation of purchases and warning market participants about the resumption of the upward dynamics. 

The NZD/USD pair is trading at 0.5828 as part of an upward correction amid expectations of the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision on Wednesday at 03:00 (GMT+2): experts suggest that the interest rate will be lowered by 25 basis points to 2.75%.