NZD/USD Price Analysis: Breaks short-term support line despite PBOC inaction
|- NZD/USD refreshes intraday low to 0.6584 after PBOC left key rates unchanged.
- An ascending trend line from September 24 offers additional support.
- 200-bar SMA holds the key to fresh upside towards the monthly top.
NZD/USD drops to 0.6584, down 0.27%, after the People’s Bank of China (PBOC) announced no change in benchmark rates during early Tuesday. In doing so, the quote drops below an ascending trend line from October 08.
Read: PBOC keeps one-year Loan Prime Rate unchanged at 3.85% in October
The underlying reason could be traced from the recently bearish comments by the RBNZ Governor Adrian Orr.
Read: RBNZ's Orr: Aware of asset price inflation, operating with medium-term focus
However, a bit broader ascending support line, at 0.6575 now, could challenge the NZD/USD bears before directing them to the monthly low of 0.6546.
Alternatively, the pair’s bounce back beyond the support-turned-into-resistance line, currently around 0.6590, will aim for the 200-bar SMA level of 0.6645.
It should be noted that the NZD/USD bulls’ dominance past-0.6645 can refresh the monthly top of 0.6683.
NZD/USD four-hour chart
Trend: Bearish
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