NZD/USD Technical Analysis: Narrowing price range on 1H
NZD/USD is trapped in a narrowing price range, according to the hourly chart. As of writing, the spot is trading in the red at 0.6672 with the range resistance and support lined up at 0.6682 and 0.6672, respectively.
- A range breakdown would imply a resumption of the sell-off from the recent high of 0.6783 and could yield a deeper drop toward 0.66, as the 14-day relative strength index (RSI) is biased bearish at 35.00.
- A range breakout would open the doors for a retest of 0.6700-0.6720.
- The official data due for release at 03:00 GMT is expected to show the credit card spending in New Zealand rose 5.5 percent year-on-year in March, following a 6.4 percent rise in February.
- A weaker-than-expected will likely boost the RBNZ rate cut bets and send in the NZD lower across the board. Hence, a range breakout, if confirmed ahead of the data release, should be viewed with caution by the NZD bulls.