NZD/USD Technical Analysis: Stays below 0.6420 resistance confluence after RBNZ’s Orr
- 100-day EMA and 38.2% Fibonacci retracement limit near-term upside.
- Sellers await a downside break of the six-week-old rising channel.
With the RBNZ’s Orr stepping back from any surprises after the central bank’s refrain from a rate cut, the NZD/USD pair trades around 0.6400 by the press time of early Wednesday.
The kiwi pair initially surged around 50 pips after the Reserve Bank of New Zealand (RBNZ) surprised markets by holding its benchmark interest rate unchanged at 1.0% again broad consensus of a 0.25% rate cut.
RBNZ’s Governor Adrian Orr, in his press conference after the rate decision, praises employment numbers while citing concerns for inflation and trading partner growth.
Read More: RBNZ’s Orr: On hold decision was unanimous
Despite registering noticeable moves off-late, the NZD/USD pair stays between key technical indicators where 100-day EMA and 38.2% Fibonacci retracement of July-October downpour, around 0.6420, restricts immediate upside while near-term channel’s support, at 0.6308 now, limit adjacent declines.
During the breakouts, the channel’s resistance line at 0.6490 and 200-day Exponential Moving Average (EMA) level of 0.6530 could please bulls while mid-October low of 0.6240 can question sellers ahead of offering 0.6200 round-figure.
NZD/USD daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
