- RBNZ rate cut by 25 basis points to 2.2 percent is largely priced in by the markets.
- Broad-based USD sell-off supporting NZD/USD higher ahead of the RBNZ meeting tomorrow.
- The pair is extending upside after bounce off from 50-DMA at 0.7090 on Aug 8th, broke above 20-DMA and 61.8% Fib at 0.7181.
- Momentum studies are bullish, Stochs and RSI are biased higher.
- Pair finds major trendline resistance at 0.7230, upside on the day capped below that level.
- Break above could see further gains upto 0.7244, 0.7281 and then 0.73 levels.
- Bullish invalidation only on break below 50-DMA currently at 0.7106, violation there could see test of 0.6956.
Recommendation: Good to go long on breakout above 0.7230, Sl: 0.7180, TP: 0.7280/ 0.73/ 0.7325
