- New Zealand dollar tumbled to five year low after RBNZ cut the official cash rate by 25bps to 3.25%.The central bank lowered its interest rates for the first time in four years to boost inflation as growth slows.
- RBNZ said that further easing may be needed and NZD remains overvalued.
- Technically it has reached major psychological level 0.7000 and has slightly bounce back from level. Short term resistance is around 0.7126 and any further bullishness can be seen only above that level.
- On break of 0.7126 would extend gains till 0.7180/0.7230. Bearish invalidation only above 0.7250 level.
- The break of 0.700 will drag the pair further down till 0.6860/0.65580 level in short term.
It is good to sell on rallies around 0.7080-7100 with SL around 0.7250 for the TP of 0.6870/0.6600.
The material has been provided by InstaForex Company – www.instaforex.com