The RBNZ cut rates by 50 bps and the NZDUSD moved lower into MA support and bounced.

IN the Asian Pacific session, the RBNZ cut rates by 50 basis points as expected, triggering a decline in NZDUSD. The pair initially broke below a key swing area between 0.5683 and 0.5694, but buyers quickly stepped in at the rising 200-hour moving average (green nline in the chart below at 0.5679), preventing further downside. This support level provided a foundation for a rebound, pushing the price higher.

Following the bounce, NZDUSD climbed back above the 100-hour moving average (blue line currently at 0.5709) and cleared the 0.5723 swing level (red solid line) signaling a potential shift in momentum. However, the upside move lacked strong follow-through, and buying interest began to fade. As a result, the pair has since rotated back to the downside, putting the 100-hour moving average to the test once again.

This MA level now serves as a key short-term decision point for buyers and sellers. If the price can hold above 0.5709 and reclaim 0.5723, the next upside target would be a retest of Monday’s high at 0.5749. A sustained move above this level would further strengthen the bullish case.

Conversely, a break below the 100-hour MA would indicate renewed selling pressure. In that scenario, traders will focus on the 0.5683 – 0.5694 swing area as the next downside target, followed by the rising 200-hour moving average at 0.5679. The next directional break will determine near-term momentum and set the tone for upcoming price action.

Technical Levels in Play:

• Support Levels:

  • 100-hour moving average → 0.5709 (short-term pivot)
  • Swing area → 0.5683 – 0.5694
  • 200-hour moving average → 0.5679

• Resistance Levels:

  • Swing level → 0.5723
  • Monday’s high → 0.5749

• Key Trading Signals:

  • Above 100-hour MA & 0.5723 → Buyers in control, targeting 0.5749.
  • Below 100-hour MA → Sellers take control, eyeing 0.5683 – 0.5694, then 0.5679.

This article was written by Greg Michalowski at www.forexlive.com.