- NZD/USD keeps upside break of 10-week-old resistance line.
- RBNZ’s FLP, LSAP fail to disappoint bulls cheering fewer calls for the negative rates.
- A five-month-old resistance line adds to the kiwi buyers’ landmarks.
NZD/USD stays bid near the highest since April 2019 while piercing the 0.6900 mark, up 1.13% now, during the early Wednesday.
Having earlier cheered the RBNZ’s refrain from providing clear signals on the negative rates, NZD/USD bulls recently benefited from Governor Adrian Orr’s economic optimism. It’s worth mentioning that the RBNZ announced no rate change while offering a new monetary policy tool, the Funding for Lending Program (FLP), which avails cheap funds for the banks. Also, the New Zealand central bank announced an addition to the Large Scale Asset Purchases (LSAP) program, by $100 billion, during today’s decision.
Read: NZD/USD hits fresh 20-month high as RBNZ’s Orr offers positive take on the economy
That said, the kiwi pair keeps the sustained break of an ascending trend line from September 02, which in turn directs the buyers towards the highs marked in March and February month’s of 2019, surrounding 0.6940/45.
However, a five-month-old resistance line, currently around 0.6965, could restrict the pair’s upside past-0.6945 amid overbought RSI conditions.
Meanwhile, a downside break below the previous resistance line, at 0.6854 now, can take rest near September highs close to 0.6800 before directing the NZD/USD sellers towards October’s peak adjacent to 0.6725.
NZD/USD daily chart
Trend: Bullish
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