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.

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

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