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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.

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