NZDUSD confirms falling wedge bullish formation on RBNZ move

NZDUSD registers the strongest intraday gains in three months after the Reserve Bank of New Zealand (RBNZ) announced plans to tapering bond purchases from late July. The kiwi pair’s ability to confirm bullish chart pattern, falling wedge, as well as a sustained break of 100-SMA, also back the buyers to aim for a 13-day-old horizontal resistance near 0.7095. However, the quote’s further upside needs a daily closing beyond the 0.7100 threshold to aim for early June’s low surrounding 0.7125.

Meanwhile, 100-SMA and the upper line of the stated wedge, respectively around 0.7010 and 0.6990, could challenge the kiwi pair’s pullback moves. In a case where the NZDUSD prices stabilize below 0.6990, a downward sloping support line near 0.6910 and the 0.6900 round figure may entertain the bears before directing them to the September 2020 tops near 0.6800. Overall, RBNZ’s ability to join the BOC signals further upside for the NZDUSD.