After experiencing poor employment rate last week, NZDUSD bears gained strength breaking the short term trendline at 0.68700 and falling till January end low at 0.67000. RBNZ Monetary Policy Statement is released early this morning. The Reserve Bank of Zealand (RBNZ) is been holding the OCR at 1.75% since November 2016. It wasn’t the fact that the RBNZ kept rates at record lows at this morning’s meeting that boosted the Kiwi, it was more the expectations the markets had built up for a more dovish statement. The Bank stated it sees keeping the Overnight Cash Rate (OCR) rate unchanged at 1.75% through to November 2020, hiking it to 1.84% in December 2020 and 2.36% by March 2022. NZD/USD surged more than 1.5%, peaking at 0.6849, the highest level in a week and recouping more than 50% of this month’s decline. Next resistance point is at 0.6858, which is the 61.8% Fibonacci retracement of that drop. Technically, NZDUSD after breaking the short term trendline at 0.68700 and even the longterm trendline at 0.68140, drops to January end low and surges back for retesting the long term trendline by reaching January end high at 0.6850. NZDUSD is expected to drop till 0.65900 after it breaks the recent low. Bulls shadow will be only seen if new higher highs are formed above 0.68900.

NZDUSD Today:
Daily open: 0.67354
Daily Last high: 0.68518
Daily Last Low: 0.67267
Daily current growth: +1.19%