NZDUSD Technical Analysis – RBNZ’s Orr revises the neutral rate higher

Fundamental
Overview

The US Dollar this week has
been erasing some of the losses experienced last week after the benign US PPI
and the Trump’s reciprocal tariffs announcement. There hasn’t been any notable
catalyst this week to support the greenback although some analysts pointed to
less dovish comments from Fed’s Waller yesterday.

On the NZD side, the RBNZ cut
interest rates by 50 bps as expected today but Governor
Orr sounded less dovish than expected as he said that 3.75% was the high
end of the range of neutral rates while previously he said it was 3.50%. That gave
the NZD a boost across the board.

NZDUSD
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that NZDUSD broke above the key 0.57 resistance recently and then got stuck
in a consolidation as the market awaits stronger catalysts. The buyers should
continue to pile in around these levels to position for a rally into the 0.5850
level next, while the sellers will want to see the price falling back below the
0.57 handle to start targeting new lows.

NZDUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have an upward trendline defining the bullish momentum.
If we get a pullback into it, we can expect the buyers to lean on the trendline
with a defined risk below it to position for the rally into the 0.5850 level next.
The sellers, on the other hand, will look for a break below the trendline to
increase the bearish bets into the 0.55 handle.

NZDUSD Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that the price broke above the counter-trendline that was defining the
pullback. The buyers will likely pile in here with a defined risk below the
trendline to keep pushing into new highs, while the sellers will look for a break
lower to position for a drop back into the 0.57 handle. The red lines define
the average daily range for today.

Upcoming
Catalysts

Today we have the FOMC Meeting Minutes. Tomorrow,
we get the latest US Jobless Claims figures, while on Friday we conclude with the
US Flash PMIs.

This article was written by Giuseppe Dellamotta at www.forexlive.com.