New Zealand Dollar rises broadly after more hawkish than expected RBNZ policy decision. NZD/USD is extending the rebound from 0.6528 short term bottom. Further rise is now expected as long as 0.6679 minor support holds, to 0.6889 resistance next.
It’s still too early to conclude that NZD/USD’s down trend from 0.7463 has completed. Rejection by 0.6889 resistance will maintain medium term bearishness for another decline through 0.6528 low. Nevertheless, firm break of 0.6889 will raise then chance of bullish reversal and turn focus to trend line resistance at around 0.7080.
AUD/NZD dips notably too and immediate focus is now on 1.0642 resistance turned support, which is also close to 55 day EMA (now at 1.0649). Sustained break there will argue that whole rise from 1.0278 has completed at 1.0795, after rejection by medium term channel resistance. In this case, fall from 1.0795 should develop into another falling leg to the whole down trend from 1.1042, targeting 1.0278 low again.
