NZD/USD trades notably higher today after RBNZ rate decision, as rebound from 0.6942 resumes. Break of the trend line resistance argues that corrective fall from 0.7463 has completed with three waves down to 0.6942. Sustained break of 0.7098 support turned resistance should add more credence to this case. Stronger rebound would then be seen to 0.7268 cluster resistance (61.8% retracement of 0.7463 to 0.6942 at 0.7264) next. Though, rejection by 0.7098 will turn focus back to 0.6942 low immediately.
Developments in AUD/NZD suggests that NZD might be having some strength of its own. Focus remains on 1.0798 support. Break there will indicate near term bearish reversal. That would extend the decline from 1.0944 to 1.0637 support and possibly below. Nevertheless, rebound from the current level would suggests that larger rise is not completed, and turn focus back to 1.0944 high.
