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  • New Zealand’s finance minister Robertson was on the wires earlier today stating that the coalition government’s decision to run surpluses and sensibly manage debt and focus on policies to support growth will help protect the economy and New Zealanders from any rainy day such as changes in the international economy.
  • Finance minister’s comments could embolden the bulls, helping the NZD/USD pair convincingly cross the trendline sloping downwards from the Sept. 26 high and Oct. 2 high.
  • As seen in the hourly chart below, the pair scaled the trendline a couple of hours ago, however, the overbought conditions reported by the relative strength index (RSI) and the loss of momentum, as suggested by the moving average convergence divergence (MACD) is likely stalling the post-breakout bullish move.
  • A minor dip cannot be ruled out and will likely recharge engines for a convincing move above the trendline resistance, currently located at 0.6485.

Hourly Chart

Spot Rate: 0.6486

Daily High: 0.6497

Daily Low: 0.6469

Trend: Cautiously bullish

Resistance

R1: 0.65 (Sept. 11 low)

R2: 0.6544 (Aug. 15 low)

R3: 0.6590 (200-candle EMA as per the 4-hour chart)

Support

S1: 0.6465 (Oct. 8 high support as per the 4-hour chart)

S2: 0.6424 (Oct. 7 low)

S3: 0.64 (psychological support)