NZD/USD jumped 25 pips to 0.6810 in the last hour, establishing a bullish divergence of the 14-hour relative strength index. The pair, therefore, may rise further toward the former support-turned-resistance of 0.6828 (50-day moving average).
The bounce, however, could be short-lived, as the 50-hour MA has dropped below the 200-hour MA, confirming the path of least resistance is to the downside. Further, the 14-day RSI has found acceptance in bearish territory below 50.00.
The RBNZ’s dovish shift on interest rates and the growing calls for a rate cut in the second half of this year will likely keep gains under check.