NZD/USD Price Analysis: Yields a big technical breakout above 0.7300 on RBNZ’s hawkish surprise
- NZD/USD confirms a symmetrical triangle breakout on the 1D chart.
- RBNZ points to a September 2022 rate hike, Kiwi takes a flight.
- Further upside likely in place, as RSI holds firmer above 50.00.
NZD/USD is extending its rally above 0.7300 after the Reserve Bank of New Zealand (RBNZ) pointed to a potential rate hike in September 2022 amid notable improvement in the economic situation.
The RBNZ’s hawkish surprise offered the much-needed boost to the kiwi bulls, as the price witnessed a big technical breakout on the daily sticks.
The kiwi confirmed a symmetrical triangle breakout on the said time frame after it raced past the falling trendline resistance at 0.7238 on a sustained basis.
At the press time, the spot is up 1.05% on the day, trading at the highest levels in three-month near 0.7310.
With the Relative Strength Index (RSI) holding firmly above the midline while eyeing the overbought territory, a test of the 0.7350 psychological levels remains on the cards.
NZD/USD daily chart
However, any pullback moves would see a test of the triangle resistance now support, below which the 21-daily moving average (DMA) at 0.7219 could emerge as a strong cap.
All in all, the path of least resistance appears to the upside.
NZD/USD additional levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
