NZDUSD renews a three-week high around 0.6500 after the RBNZ confirmed the widely anticipated 0.50% rate hike. The upside momentum takes clues from the early-week break out of a downward sloping trend line from the April peak and the 20-DMA, around 0.6385-80. Also keeping the bulls hopeful is the RSI (14) conditions, firmer but not overbought.
That said, a horizontal area comprising levels marked since late January, around 0.6540, appears a tough nut to crack for the pair buyers. In a case where the quote rises past 0.6540, the upward trajectory towards the 50-DMA level surrounding 0.6660 can’t be ruled out.
Meanwhile, a downside break of 0.6380 could direct NZDUSD sellers towards 0.6290-85 intermediate support ahead of highlighting the monthly low of 0.6210 on the bear’s radar.
Overall, NZDUSD buyers are ready for further upside but multiple levels stand tall to test the north-run.