The NZD/USD rallied and closed higher during yesterday’s trading session with the on-going speculation the Reserve Bank of New Zealand would be hiking interest rates from 3.00% to 3.25% (25bps) later today. Intra-day bias remains on the upside as 21 and 55 EMA’s are showing bullish momentum in the 1 hour and 4 hours time-frame. Also SSRC and OSMA oscillators are showing a sign of further rise on both time-frames.
A clear break of 0.85535 resistance (last week’s high) would see further demand to 0.86400(weekly R1 pivot). As long as 0.85265 support holds, bullish bias remains intact. However a break of this support might dampen the bullish momentum and we might see a retest of 0.84800 support (low of this week). A break of 0.84800 support might bring further fall to 0.84183(weekly S1 pivot).