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MTrading Team • 2023-11-29

NZDUSD jumps to four-month high despite RBNZ inaction

NZDUSD jumps to four-month high despite RBNZ inaction

NZDUSD extends the previous day’s 200-SMA breakout despite the Reserve Bank of New Zealand’s (RBNZ) status quo. In doing so, the Kiwi pair ignores the overbought RSI (14) line and the RBNZ’s hesitance in lifting the rates. However, bullish MACD signals join the key SMA breakout to keep the buyers hopeful of piercing a downward-sloping resistance line from early February, close to 0.6275 at the latest. However, an area comprising multiple levels marked since February 09, close to 0.6385–6400, appears a tough nut to crack for the bulls before targeting the yearly peak of around 0.6540.

Meanwhile, a convergence of the 200-SMA and a fortnight-old rising support line, close to 0.6100 at the latest, limits the short-term downside of the NZDUSD pair. Following that, October’s peak of 0.6055 and the 0.6000 round figure could test the bears before giving them control. In that case, the monthly low of 0.5854 and the previous monthly bottom, also the yearly low, of nearly 0.5775 will be in the spotlight.

Overall, NZDUSD remains bullish but the road towards the north appears long and bumpy.

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