NZD/USD Reversing from 0.7000 Vicinity
On Thursday, the NZD/USD
pair moved higher after RBNZ monetary policy statement to nearly
reclaim 0.7000 handle before retracing back below 0.6950 level.
The
New-Zealand Dollar (NZD) strengthened against the US counterpart (USD)
after RBNZ undermined rate cut speculations. However, RBNZ also pointed
that the country's currency was too strong and that it might need to cut
interest rates further to ensure inflation moves to its target range.
Technical levels to watch
Any
further down-slide from current levels now seems to find immediate
support near 0.6925 level, which if broken would again expose 0.6885-80
support area. Momentum below 0.6885-80 support could further get
extended back towards 0.6840-35 support region.
On the upside,
0.6980-0.7000 handle remains immediate key resistance area to watch for.
On a clear break-through this immediate resistance, the pair could be
aiming towards retest 0.7050 area (April high) before heading towards
testing its next major resistance near 0.7095-0.7100 area, marking the
upper trend-line resistance of a well-established ascending
trend-channel held since Jan. 2016.
