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The New Zealand dollar was seen trading lower against the US dollar during the Asian session. One of the main reasons for the decline in the NZDUSD pair was the RBNZ interest rate decision and statement. The RBNZ kept the interest rates at 3.5% as expected by the market. However, the key thing was the RBNZ statement, which mentioned that the central bank might pause the rate hikes for a brief period. That did not go down well with the New Zealand dollar buyers, as the NZDUSD pair fell below the 0.8200 support area after the release. The pair traded as low as 0.8175 after the release.

There is an important bearish trend line on the hourly chart of the NZDUSD pair, which acted as a hurdle for the pair on the upside on a number of occasions. If the pair manages to settle around the 0.8170-50 area and corrects a bit higher, then the mentioned trend line might come into play, and act as a hurdle for the pair. Moreover, the 23.6% fib retracement level of the last decline from the 0.8347 high is also sitting around the mentioned resistance area. Only a break and close above the highlighted bearish trend line might negate the negative view and put the pair back in the bullish territory. The most important swing resistance in that situation would be around the 0.8280 level.

If the NZDUSD pair fails to correct higher from the current levels, then a break below the 0.8172 level might take the pair towards the 0.8150-40 support area.

Overall, selling rallies might be considered in the short term as long as the pair is trading below the 0.8220 level.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com