Technical Outlook: NZDUSD – Bids At 0.73 Hold Dips Ahead Of RBNZ

The Kiwi dollar eased from the session high at 0.7345, posted after solid NZ jobs report, released late Tuesday.

Renewed attempt at Tuesday’s 0.7350 high, hit after strong rally (the biggest one-day gains since 13 Dec) failed, with fresh easing testing bids at 0.7300 zone (rising 20SMA / psychological support).

Loss of 0.7300 handle would risk dip towards key near-term support at 0.7256 (06 Feb correction low, reinforced by rising daily Kijun-sen and broken weekly 200SMA).
Weakening daily momentum studies and south-heading daily RSI maintain pressure, as upside attempts repeatedly failed to clearly break above the top of thick falling hourly cloud.

Stronger correction of 0.6821/0.7436 (08 Dec / 24 Jan rally) could be expected on loss of 0.7256 pivot, which would expose next strong supports at 0.7201 (Fibo 38.2% of 0.6821/0.7436) and 0.7143 (200SMA) in extension.

Bullish scenario requires sustained break above daily Tenkan-sen at 0.7338 to turn near-term focus higher.

RBNZ rate decision is due later today, with central bank expected to keep interest rates unchanged at 1.75% (the RBNZ keeps overnight cash rate at the lowest levels since 1999 and maintains 1.75% rate since late 2016).

Res: 0.7338, 0.7350, 0.7370, 0.7405
Sup: 0.7291, 0.7256, 0.7201, 0.7143