The New Zealand dollar rallied as the RBNZ raised its cash rate by 50bp. As the pair hovers above March 2020’s lows around 0.5500, the RSI’s oversold condition triggered a ‘buy-the-dips’ behaviour. Recent highs are a sign of waning selling pressure as the bears start to take profit. 0.5830 on the 20-day moving average is the resistance and its breach may put the psychological level of 0.6000 in sight. The recovery could gain traction from higher lows with the closest one being 0.5690, or a revisit of 0.5590 would reveal weakness.
