Technical Analysis: NZDUSD

NZDUSD declined by more than 2%

On Wednesday, NZDUSD plunged by more than 2%, and it broke below the 0.610 mark at one point. This occurred for the first time since May 10.

The RBNZ hinted that the interest rate had reached the peak

On Wednesday, the RBNZ raised the official cash rate by 25 basis points to 5.5%, meeting expectations. Monetary policy committee members voted for the interest rate hike by five to two, the meeting minutes showed. According to the forecast made by the RBNZ, the official cash rate will not rise, and will begin to fall from the third quarter of 2024.

Fed officials made hawkish statements

The Fed member Christopher Waller said he will support the Fed increasing the interest rate in June or July, and he hoped that the Fed could continue to raise the interest rate unless the inflation is contained. He also added that the debt ceiling didn’t affect his point of views.

Technically speaking, the market trend is bearish

the chart of the day

On the chart of the day, NZDUSD continued to fall. The market trend is bearish in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, demonstrating that NZDUSD will fall further. If NZDUSD continues to decline, investors should focus on whether NZDUSD will break through the support at 0.600.

4-hour chart

On the 4-hour chart, NZDUSD continued to fall. The market trend is bearish. In terms of technical indicators, MACD broke below the zero axis after death cross occurred, showing that the market trend is bearish. Investors should focus on whether NZDUSD will break through the resistance at 0.612. It will fall further if it rebounds but is capped at 0.612.

Key resistance: 0.612, 0.618

Key support: 0.606, 0.600

Generally speaking, as the RBNZ expected that the interest rate had reached the peak, and Fed officials made hawkish statements, NZDUSD is likely to fall further in the short term. Investors should focus on US economic data during the day.