- The NZD / USD bounces off crucial support as the RBNZ revises the OCR forecast higher.
- The January 6 high at 0.7315 is the level to beat for bears.
The NZD / USD pair has hit a high of 0.7384 during the Asian session on Wednesday, a level last seen in April 2018. The pair has defended the old resistance, now turned into support, at 0.7315 (high of January 6) earlier in the day, despite the Reserve Bank of New Zealand (RBNZ) expressing its willingness to provide further stimulus and highlighting its ability to implement negative rates if necessary.
However, the central bank has raised its forecast for OCR, the rate necessary to achieve its inflation and unemployment targets, backing the case for the withdrawal of the stimulus in 2022.
That has likely benefited the NZD, propelling the NZD / USD pair to fresh multi-year highs above Tuesday’s high of 0.7347.
The daily chart now shows the RSI breaking out of its descending channel. As such, additional earnings could be seen.
The immediate bias would turn bearish if the pair fails to sustain gains above the Jan 6 high of 0.7315.
NZD / USD daily chart
NZD / USD technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
