NZD/USD surges 1.4% to test key resistance after RBNZ cuts rates

NZD/USD posted its strongest daily gain of 1.4% following the Reserve Bank of New Zealand's decision to cut interest rates by 25 basis points. The pair's bullish momentum has pushed prices toward critical swing area resistance levels, marking the next significant technical hurdle. The RBNZ's dovish guidance, suggesting rates will remain steady for an extended period, initially seemed bearish for the currency. However, traders interpreted this as reducing uncertainty, triggering aggressive buying that made NZD/USD the day's best performer among major pairs. Technical analysis indicates the pair is approaching key resistance zones that have capped previous rallies. A successful break above these levels could open the path toward higher targets, while failure might trigger profit-taking. Traders should monitor upcoming economic data from both New Zealand and the US for further directional cues, with particular attention to any shifts in central bank rhetoric.