The New Zealand dollar has fallen as expected. The combination of a dark cloud cover candle pattern and bearish RSI divergence is following through. Whether or not this pair follows through more and breaks below 0.236 fib support around 0.85 will likely have to wait until next Wednesday when the RBNZ is expected to hike rates.
Next week the RBNZ is expected to hike rates from 2.75% to 3%, which means NZD may gain some strength as a result. We may exit the short prior to this rate decision and re-enter short at a later date.
For now we continue to hold short and are targeting 0.85.