NZDUSD has been dynamically moving south since mid-April. At that time, the declines reached nearly 450 pips. After today’s overnight decision of the RBNZ bank to keep interest rates at 1.75%, declines deepened by another 50p, reaching the downward trend line extended from the 27.07.17 high, setting a minimum at 0.6898 at the opening of today’s European session.
Two scenarios are possible in the near future. The first is a reflection from the trend line and return to the nearest resistance at 0.7054.In the second case, if the trend line has been overcome, further drops to the support level of 0.6840 are possible, where there may be demand and a correction to the aforementioned resistance.