NZD/USD tumbled sharply after the RBNZ’s 50bps rate cut to 2.50%, with policymakers retaining an easing bias that signaled scope for further reductions ahead. The policy shift reignited downside momentum in NZD/USD, which broke through 0.5753 support, signaling a renewed leg lower in the ongoing decline from 0.6119.
Technically, near term outlook will stay bearish as long as 0.5844 resistance holds, in case of recovery. The immediate focus is on the bottom of the descending channel near 0.5730, where sustained break would likely drive NZD/USD pair through 100% projection of 0.6119 to 0.5799 from 0.6006 at 0.5686.
Should sellers push beyond 0.5686, NZD/USD could see downside acceleration toward 0.5484 cluster zone, with 161.8% projection at 0.5488. That area is expected to attract strong buying interest to bring rebound. But until then, the path of least resistance remains to the downside.
