The Reserve Bank of New Zealand decreased its key interest rate from 2.75% to 2.5% in line with expectations. However, the NZD grew against the USD and approached last week highs.
In its Rate Statement, the regulator stated that it expects stability in the near future with regards to the interest rates. The RBNZ is not going to dismiss completely an option of further policy easing if needs but it is unlikely to happen soon, which is a positive factor for the national currency.
Support and resistance
On 4-hour chart, the pair is trading between the middle and upper MA’s of . Moving averages with 50, 100 and 144 periods remain below the price and directed up indicating an upward trend in the pair. histogram is in the positive zone and its volumes are gradually growing. lines of the indicator are crossing each other and directed down.
Support levels: 0.6719, 0.6675, 0.6659 (middle MA of , MA50), 0.6636 (MA100), 0.6578, 0.6470, 0.6428.
Resistance levels: 0.6747, 0.6787 (last week high).
Short positions can be opened from the level of 0.6719 with the target at 0.6675 and stop-loss at 0.6747.
Long positions can be opened after the price consolidation above the level of 0.6747 with the target at 0.6787 and stop-loss at 0.6719.