NZDUSD struggles to justify RBNZ’s eighth rate hike
Although the RBNZ didn’t disappoint, like the RBA, and announced a widely expected 0.50% rate hike, the NZDUSD pair remains mildly bid after refreshing the weekly top. In doing so, the Kiwi pair stays below a one-week-old horizontal hurdle surrounding 0.5750. With this, the odds of the quote’s pullback towards the latest swing low near 0.5680 can’t be ruled out. However, the 0.5620 and the yearly low around 0.5565 will challenge the bears afterward.
Meanwhile, a successful break of the 0.5750 resistance will aim for the 100-SMA hurdle near 0.5830. Following that, a downward sloping trend line from August 12, close to 0.5925 by the press time, will challenge the NZDUSD pair’s further upside. It’s worth noting that the 200-SMA resistance near 0.5980 appears the last defense of the bears, a break of which won’t hesitate to probe the previous monthly top near 0.6160.
Overall, NZDUSD remains in a bear trap despite the latest rebound. The downside, however, appears limited.
