FxWirePro: NZD/USD plunges after RBNZ disappoints with smaller-than-expected rate hike

Chart - Courtesy Trading View 

NZD/USD plunged over 0.60% to refresh multi-week lows below 0.69 handle, outlook bearish. 

The Reserve Bank of New Zealand (RBNZ) disappointed markets with smaller-than-expected interest rate hike, dampening the kiwi.

RBNZ hiked its interest rate to 0.75% and raised its long-term cash rate projection by 50 bps. Investors had expected a bigger hike and long-term cash rate projection from the central bank

Following the RBNZ event, the New Zealand dollar plunged across the board and interest rate swaps reversed sharply.

NZD/USD broken major trendline support and is testing next key support at 110-week EMA at 0.6888. 

Major Support Levels: 

S1: 0.6888 (converged 55-month EMA and 110-week EMA)

S2: 0.6866 (20-month MA)

S3: 0.6849 (Lower W BB)

Major Resistance Levels: 

R1: 0.6943 (Trendline)

R2: 0.6966 (5-DMA)

R3: 0.7000 (200H MA)

Summary: NZD/USD technical indicators are poised for further downside. Break below 110-week EMA will drag the pair lower. Next major support lies at 200-week MA at 0.6759.