FX.co ★ NZD/USD Attention At Resistance!

NZD/USD rallied after the RBNZ meeting and now it stands at the 0.7305 level. The bias is bullish, so the price could resume its growth if it takes out the immediate resistance levels. The Reserve Bank of New Zealand maintains its Official Cash Rate steady at 0.25% in today's meeting.

The Kiwi rallied as the RBNZ signaled a potential rate hike in 2022. The pair is trading within a resistance area right now. Some poor US data reported tomorrow should boost the pair. The US Prelim GDP is expected to increase by 6.5% versus 6.4% growth in the previous reporting period, while the Unemployment Claims could drop from 444k to 427k in the last week.

NZD/USD could slip lower in the short term after the current rally if the US data will beat expectations on Thursday and Friday.

NZD/USD Breakout Attempt!

NZD/USD failed to stabilize below the uptrend line signaling strong buyers. Now the pair is trading above the ascending pitchfork's upper median line (UML) which represents strong dynamic resistance.

The R2 (0.7314) represents the immediate resistance. Only closing and stabilizing above it could indicate further growth. Technically, the bias remained bullish after NZD/USD's failure to reach and the median line (ML).

Outlook!

NZD/SD could extend its growth if it stabilizes above the broken upper median line (UML) and beyond the R2 (0.7314) level. Still, you should be careful a false breakout above the R2 and through the UML may signal a short-term decline.

Personally, I want to see a temporary consolidation above the broken levels before resuming its growth. In the short term, NZD/USD could slip lower to retest the 61.8% retracement level if the US Dollar Index jumps higher after tomorrow's data dump.

Closing above 0.7316 today's high could really signal more gains ahead. The R3 (0.7357) could be used as the next upside obstacle.