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Deep Dip in NZD/USD – RBNZ Shocks the Market With 1% Rate

NZD/USD is trading at 0.6490, having hit a high of 0.6588 and low of 0.6376 earlier today. Despite the pullback, the outlook as per the 4-hour chart remains strongly bearish, as the RBNZ changed the trend of the pair with a new interest rate.

The Reserve Bank of Newzleand slammed the market with a 0.50% rate cut. The Reserve Bank has presented a tremendous surprise by cutting the Official Cash Rate to 1.00% from 1.5% and states that the lower rate was required for it to continue to satisfy its employment and inflation objectives.

As a result, NZD/USD has violated the double bottom support level of 0.6495, causing a sharp drop of 0.6370.

As you know, the sell-off came in response to a sudden and unexpected change in the RBNZ interest rate decision.

NZD/USD is now likely to fall further towards 0.6370, while the resistance and retracement level stays around o.6495.

RSI and Stochastics are massively oversold, but the intensity of the news is pretty sharp.

Support Resistance
0.6479 0.6618
0.6423 0.6701
0.6284 0.684
Key Trading Level: 0.6562

NZD/USD – Trade Idea

Consider staying bearish below 0.6470 as the market may slightly bounce off before drop further. On the lower side, NZD/USD may target 0.6380.

Good luck!

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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