NZDUSD breakout lifted the pair more than 1% on Thursday, with the move reaching 0.5762 and nearing a key resistance area around 0.57658 to 0.5768.
The pair first jumped after the RBNZ raised rates by 25 basis points. However, that early gain faded as broad U.S. dollar buying picked up and equities fell. The drop then found buyers near the 200-hour moving average, which helped set up the rebound.
Thursday’s advance gathered pace as risk mood improved and equity markets strengthened. Meanwhile, the hourly chart turned more supportive after the pair cleared a swing zone between 0.5719 and 0.5726. That area had capped gains several times since April, and again in June and July.
NZDUSD Breakout Nears Key Barrier
The latest push left NZDUSD breakout traders focused on the next test higher. The rally stopped just 3 pips short of the 38.2% retracement of the fall from the June high, placed at 0.57658.
That level also sits close to the June 11 swing low at 0.5768. As a result, the market now faces a tight resistance band that could shape the next move. If buyers push through that zone, a break above 0.5777 would give them stronger technical control.
Support Zone Comes Back Into View
Even so, the sharp rise could draw sellers into the market near that retracement area. If that happens, traders may look first to the old resistance zone near 0.5723, which now acts as support.
For now, buyers still lead the move. However, the reaction around 0.57658 to 0.5768 may decide whether the NZDUSD breakout extends further or stalls after the strong rally.
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