The pair manages to stop the rot, trading back above the 0.7200 handle

It was looking a little gloomy for the kiwi early on yesterday, but as the dollar weakened in European trading NZD/USD more or less pared losses. And when the Fed meeting was over and done with, the dollar weakened further and that was a catalyst for the pair to post a solid rebound from the lows.

On the daily chart, the hold at the 38.2 retracement level and the 200-day MA (blue line) is key. While the pair has failed to sustain a break above 0.7400 this year, any downside move so far has also been limited.

Yesterday's hold was the fourth trading day that the pair manages to hold on to support at the 38.2 retracement level - and the triple bottom formation here is a positive signal for buyers that there is some short-term momentum higher for the pair still.