NZDUSD is trending after the breaking of the wedge formation. Tomorrow’s rate decision is expected to affect NZD mildly. 50 basis point hike is already fully priced in the markets. Rising CPI and lower GDP might reduce the hawkishness of the Reserve Bank of New Zealand members. But the hiking cycle is expected to continue, at least till the end of the first quarter of 2023 with a peak of %4.
For the longer-term outlook, a possible inverse head and shoulders might be forming over the 0.60-0.61 zone. The Spearman correlation indicator has already signaled a possible upside correction. If the short-term uptrend holds, it may lead the price to the %38.2 retracement level, 0.6597 resistance after the RBNZ decision.
On the other hand, below 0.60 is the danger zone for NZD bulls.