FxWirePro: NZD/USD fades RBNZ-led gains, finds major resistance at 0.69 (200-DMA)

Chart - Courtesy Trading View 

NZD/USD was trading 0.06% higher on the day at 0.6852 at around 03:15 GMT.

The major has erased most of the RBNZ-led gains and has slipped lower from session highs at 0.6901.

The Reserve Bank of New Zealand surprised markets earlier on the day with a 50 basis points (bps) Official Cash Rate (OCR) hike.

The market was expecting that the RBNZ will follow the streak of 25 bps OCR hike, and the hawkish outcome sent the kiwi soaring.

NZD/USD spiked higher to test 0.69 handle, before erasing most of the gains. 200-DMA offers stiff resistance at 0.69 handle.

Also, US dollar remains buoyed across the board, with the DXY holding above 100.00, keeping lid on the pair's upside.

High US inflation (at 8.5%) has raised the odds of a 50 basis point (bps) interest rate hike by the Federal Reserve in its May monetary policy.

Major Support Levels: 

S1: 0.6844 (110-EMA)

S2: 0.6779 (20-week MA)

Major Resistance Levels: 

R1: 0.6878 (21-EMA)

R2: 0.6902 (200-DMA)

Summary: NZD/USD upside capped at 200-DMA. Decisive break above required for further gains.