NZD USD Has Price Cluster at .7395 to .7398

NZD USD traders are setting aside the news that the Reserve Bank of New Zealand has decided to leave interest rates unchanged at 2.50% and is not likely to hike rates until after the middle of 2010.

NZD USD traders are setting aside the news that the Reserve Bank of New Zealand has decided to leave interest rates unchanged at 2.50% and is not likely to hike rates until after the middle of 2010. 

Traders instead have decided to focus on the renewed interest in higher yielding assets.  Today’s better than expected rise in U.S. Third Quarter GDP has triggered a sharp rally but this market still has to overtake a key price cluster at .7395 to .7398 before it will start to look bullish again.

Yesterday the main trend turned down on the daily chart which makes this current short-covering rally vulnerable to profit-taking or renewed selling pressure following at test of .7395 to .7398.