A string of resistance targets ahead.
The RBNZ kept rates unchanged (after a cut at the prior meeting) but did signal further cuts are likely (or that is the thought). The NZDUSD moved lower but quickly reversed, squeezing the shorts. The fall on the headlines took the price below a lower trend line on the hourly and the 100 hour MA, but the price snapped back higher.
We currently trade near session highs and is approaching a cluster of resistance target. On the hourly chart, the pair is taking a breathe at a topside trend line at 0.66845 currently. Above that and on the daily chart below, the:
- 100 day MA comes in at 0.6695
- 200 day MA comes in at 0.6705, and the
- 50% retracement of the move down from the March high comes in at 0.67095.
All that suggests the going may get tough on more upside momentum. I would expect sellers to lean against the area.
Lot's of overhead resistance to contend with on more upside momentum.
