NZD/USD rose on Monday after the Reserve Bank of New Zealand announced that they will raise interest rates by 0.50%, from 1.50% to 2.00%. That, coupled with the weakening demand for dollar, is likely to provoke further growth in the pair.
Technical picture:
The quote is above the middle line of the Bollinger indicator, above the SMA 5 and SMA 14. The relative strength index (RSI) is under the overbought zone and is indicating a slowdown in growth, while the stochastic indicator is already in the overbought zone and signals a slowdown in the decline.
Possible dynamics:
Growth and consolidation above 0.6500 may lead to a local rise to 0.6585.
