NZD/USD Sideways Range Set for a Breakout - Who's Up for Trade?
|The NZD/USD jumped 1.3% to 0.6415. The Reserve Bank of New Zealand kept its benchmark rate unchanged at 1.00% (expected to be lowered to 0.75%), saying: "The Committee recorded that the uncertainties to the economy in the short term were shifted to the downside and accepted it would append additional monetary stimulus if economic progress warranted it."
New Zealand's central bank stunned traders by keeping interest rates on steady at an all-time low of 1% yesterday. The RBNZ noticed no urgency to loosen up the monetary policy further, pushing the kiwi dollar dramatically higher.
| Support | Pivot Point | Resistance |
| 0.6391 | 0.6403 | 0.6424 |
| 0.637 | 0.6437 | |
| 0.6336 | 0.647 |
Technically, the NZD/USD is trading in the sideways range of 0.6420 - 0.6385 on the 4-hour chart. The pair surged on hawkish RBNZ policy decision to keep the rate on hold at 1% while the rest of the market expected a rate cut.
The MACD and RSI are considerably overbought but are stuck in a choppy range. A bearish breakout of 0.6385 can trigger a sell-off until 0.6340. While a bullish breakout of 0.6420 can drive more buying until 0.6460.
NZD/USD - Trade Setup
Sell Stop - 0.6380
Take Profit - 0.6340
Stop Loss - 0.6420
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.