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Kiwi is not ready for 0.8700 assault yet

FXStreet (Moscow) - NZD/USD has retraced from the daily high of 0.8694 and settled at 0.8662 in Asia

Kiwi is flying high

The recent move of the RBNZ helped the pair target the May highs, as the central bank not only hiked the rate, but also gave the hint on additional tightening in the coming months. The inflation pressure increases above trend making the Reserve Bank confident in the right course of monetary policy, and giving the kiwi chances for new highs in store. The initial target for the pair may be at 0.8690 with 0.9700 to follow. The downside correction is likely to be limited by 0.8600.

What price levels and patterns have to be considered?

Current price is 0.8664, with resistance ahead at 0.8668 (Hourly 20 EMA), 0.8688 (Daily Open), 0.8688 (Monthly High), 0.8688 (Weekly High) and 0.8694 (Daily High).

Next support to the downside can be found at 0.8655 (Daily Low), 0.8640 (Weekly Classic R2), 0.8637 (Daily Classic PP), 0.8572 (Daily Classic S1) and 0.8570 (Weekly Classic R1).

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