The NZD/USD has managed to increase in the second part of the day and has deleted the morning losses, remains to see what will happen in the upcoming hours as the fundamental factors have taken the lead and are driving the rate. Price has decreased in the early morning and has touched new lows, has approached the 0.7000 psychological level, but has found temporary support at the 0.7015 level and now is trading higher again.

Has increased significantly in the afternoon, reaching the 0.7072 level, but is facing a tough resistance area, we’ll have to be patient to see what will happen because a rejection from here could bring us a good selling opportunity. However, we have to wait for a fresh trading signal because we don’t have a trading opportunity right now.

We had a significant move in the last 30 minutes as the Reserve Bank of New Zealand has published the Official Cash Rate, the rate remains unchanged, at 1.75%, matching expectations. The RBNZ is somehow expected to maintain the monetary policy unchanged in the coming period, so remains to see how the Kiwi will react.

The greenback has decreased in the afternoon also because the United States economic data have disappointed, the Existing Home Sales have dropped from 5.69M to 5.48M in February, much below the 5.59M estimate.

The rate continues to challenge the 0.7053 static resistance and the 61.8% retracement level, has jumped again above the 150% Fibonacci line (descending dotted line), but has failed to stay there and now is showing some exhaustion signs. Has failed to reach the 0.7089 yesterday’s high, signalling that is losing bullish momentum, remains to see what will happen, but another drop in the coming hours could bring us a selling opportunity.

I’ve said in my previous article that we may have a selling opportunity if the rate will come to test the confluence area formed at the intersection between the 0.7053 level with the 150% Fibonacci line and with the third warning line (wl3), so you’ll have to be patient because the rate could still increase as long is located above the wl3.