Technical Analysis: Dovish RBNZ drags NZDUSD further below five-month-old support line

NZDUSD refreshes monthly low on the Reserve Bank of New Zealand's (RBNZ) dovish halt. The RBNZ kept its benchmark rate unchanged at 0.25% but boosted the Large Scale Asset Purchases (LSAP) to NZD100 billion. The policymakers also left their bullish tone behind while showing readiness to accept unconventional measures. As a result, the kiwi pair extends its break of an ascending trend line stretched since March 2020. The same direct the sellers towards the mid-July low near 0.6500 ahead of highlighting the June month's low near 0.6385 and 200-day SMA level of 0.6360.

If at all weak RSI conditions trigger the pair's pullback, which is less likely, bulls will have to cross the support-turned-resistance, at 0.6600 now, before convincing the markets. Should there be a clear rise past-0.6600, 0.6685, 0.6700 and July month's top near 0.6715 could lure the buyers before challenging the December 2019 peak of 0.6735.

Join us on FB and Twitter to stay updated on the latest market events.