28 Apr 2016
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.
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.