NZD/USD continues to rise, eyes 0.6400

By FXStreet FXStreet (Córdoba) – NZD/USD is approaching daily highs amid a decline of the US dollar across the board as the Federal Reserve starts its 2-day meeting. Tomorrow the central bank will announce if it raises rates or not, a decision closely monitor by investors.

NZD/USD continues to recover

The pair rose yesterday for the third trading day in a row as it continues to recover from last week decline after the rate cut by the Reserve Bank of New Zealand. Earlier today NZD/USD peaked at 0.6375, reaching the highest level since the RBNZ action. Afterwards price retreated and dropped to 0.6332.

After the beginning of trading in Wall Street resumed the upside and currently trades at 0.6368/72, slightly below daily highs. Momentum continues to favor the upside.

The pair is near the level it had before the rate cut. To the upside, the key resistance levels are located at 0.6375 (daily highs), 0.6390 and then the 0.6400 handle. A consolidation on top of 0.6400 could open the doors for more gains.

On the downside support now might be located at 0.6340, 0.6330 (daily low) and 0.6290/95 (Sept 14, 15 lows).
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Source:: FX Street