The NZDUSD traded lower before the US market session as the price broke below 0.62 to test the 0.6170 intermediate support area.
However, due to the overnight weakness of the DXY, moves to the downside was sustained as the NZDUSD reversed strongly to reclaim and trade beyond the 0.62 resistance turned support level.
With the Reserve Bank of Australia (RBA) interest rate decision due today, the volatility and directional bias of the NZDUSD could be heavily influenced due to its correlation with the AUDUSD.
While the AUDUSD usually drops following an interest rate decision from the RBA, the most recent decision in February saw the AUDUSD climb briefly higher.
Therefore, if this upward move continues for the NZDUSD, the price could retest the 0.6260 resistance level, however, watch out for a potential hurdle at the 0.6234 price level which aligns with the 61.8% Fibonacci retracement level.
However, due to the overnight weakness of the DXY, moves to the downside was sustained as the NZDUSD reversed strongly to reclaim and trade beyond the 0.62 resistance turned support level.
With the Reserve Bank of Australia (RBA) interest rate decision due today, the volatility and directional bias of the NZDUSD could be heavily influenced due to its correlation with the AUDUSD.
While the AUDUSD usually drops following an interest rate decision from the RBA, the most recent decision in February saw the AUDUSD climb briefly higher.
Therefore, if this upward move continues for the NZDUSD, the price could retest the 0.6260 resistance level, however, watch out for a potential hurdle at the 0.6234 price level which aligns with the 61.8% Fibonacci retracement level.
Free trading community: discord.gg/kPDXU2ZaDt
