NZD/USD chart - Trading View
NZD/USD remains bid in the Asian session today, trades 0.66% higher at 0.5968 at around 04:35 GMT.
Broad-based US dollar retreat and rebound in oil-price supports upside amid a risk-on market sentiment.
Kiwi is now tracking its Australian counterpart higher as RBA measures to combat the pandemic offer fresh impetus.
The Reserve Bank of New Zealand (RBNZ) has added $3 billion of Local Government Funding Agency (LGFA) debt to its Large-Scale Asset Purchase programme (LSAP).
In the latest statement the RBNZ on Tuesday, said that the central bank will extend its asset purchasing program (QE) to a total of NZD 33 billion now.
The pair spiked higher as we write (after RBA meeting) to test session highs at 0.5982. Technical studies are also slightly bullish.
The pair is extending gains above 200H MA and has tested 21-EMA resistance at 0.5981. Break above will see further gains.
Stochs and RSI support upside. Bullish divergence and MACD crossover on signal line add to the upside bias.
Break above 21-EMA to see test of March 27 highs at 0.6068 ahead of 50% Fib at 0.6112.
5-DMA is immediate support at 0.5918. Retrace below negates any upside bias.
Support levels - 0.5936 (200H MA), 0.5918 (5-DMA), 0.5843 (Apr 3 low)
Resistance levels - 0.5982 (converged 21-EMA and 61.8% Fib), 0.6068 (Mar 27 high), 0.6112 (50% Fib)
Guidance: Stay long on breakout at 21-EMA, place stops at 0.5910, target 0.6060/ 0.61
