The NZDUSD fell sharply yesterday after the RBNZ delivered a 50-basis point rate cut. While markets had considered that possibility, the size of the cut still sparked a decisive push lower. The move took the pair down to test a lower trendline support on the hourly chart, where buyers emerged to stall the decline. From there, a rebound lifted the pair, retracing roughly half of the initial drop.
That recovery extended into today’s Asian session, with price action stretching up to a critical resistance zone. The confluence was tight: the 50% retracement of the March–July rally at 0.5802, aligned with both the 100- and 200-hour moving averages near 0.5804. The high print reached 0.5805, before buyers lost momentum and sellers regained control.
This rejection reinforces the importance of the 0.5802–0.5805 zone as a key bias-defining area. Staying below keeps the advantage with sellers, with immediate downside targets at the September low of 0.5753, followed by yesterday’s trough and the 61.8% retracement of the April–July advance at 0.5727. A break beneath those levels would open the door for accelerated selling momentum.
