NZD/USD inches higher today, following RBNZ decision to hold its interest rate steady at 5.50%. However, this uptick seems more driven by prevailing slight risk-on sentiment, and a weaker Dollar rather than the central bank’s decision itself.
From a technical perspective, while further short-term rally in NZD/USD seems probable, there isn’t yet a clear signal for bullish trend reversal. The pair remains capped below declining trend line, initiated from February’s high of 0.6537. Moreover, price action from 0.5894 do not exhibit a clear impulsive structure, suggesting it could be merely a corrective pattern within the broader decline from 0.6537.
On the downside, break of 0.6131 support will argue that the fall from 0.6537 is ready to resume through 0.5984 low.
