$NZDUSD drops on RBNZ rate decision/comments

Earlier today New Zealand central bank held its interest rates steady at 1.75% as forecasted by the analysts. The central bank maintained dovish stance to cut interest rates further this year as the current rates are high enough to keep New Zealand Dollar expensive vs the majors. NZD dropped 1.3% vs the USD as indicated in the daily chart. Central bank seems to have achieved its goal on the currency beautifully, well atleast for now.

On the technical front, downward diverging channel is seen in formation. Currency pair did try to break out around 0.73 zone by trying to consolidate following on trading interests, but in vain. Currently at around 0.72128, the NZ Dollar will probably continue the descent towards 0.7105 level and further at 0.6968 level (as shown matching with earlier demand zones). On the flip-side, resistance exists around 0.7376 level, a breakout above will see resistance at multi-months high levels of 0.7487.

MACD and RSI also show soaring ahead for the $NZDUSD, with crossover from recent highs and weakening strength respectively.


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