FXStreet (Guatemala) - NZD/USD has risen sharply on the back of the Reserve Bank New Zealand's (RBNZ) interest rate decision. The RBNZ has cut the OCR to 2.5% from 2.75% and the bird dropped initially to 0.6571 and bounced to 0.6732 as the statement was being soaked up. The RBNZ statement said that they will reduce rates further if warranted but expects them to remain steady, offering the bulls some lee-way. The key take away from the statement was that they expect to reach inflation goal at current rate settings. NZD/USD was making a recovery from the 0.66 handle in an otherwise bearish trend from the highs of last week of 0.6663 with price that went on to score a low of 0.6594 on profit taking from the month's highs. On previous bullish attempts, the 200 SMA on the 30 min sticks were capping recoveries and the 100 SMA on the houly in the same fashion before a few minutes to the release when price was bid through to 0.6662. The RBNZ had been widely expected to cut interest rates by economists just a week before the US Federal Reserve meets and is expected to raise US interest rates for the first time in nine years. However, desks were more evenly split so volatility could be the outcome on this and throughout the press conference. However, the upside could be limited ahead of the Fed next week, especially with the RBNZ saying that a further drop in the value in the Kiwi would be appropriate. NZD/USD levels Technically, bears have been eyeing a deep target of 0.6578 through the 100 4hr SMA at 0.6588. Downside risk through the 20 DMA 0.6579 and the cluster of key MA's could be pivotal where the price bounced from post RBNZ. 0.6787 remains key resistance as 3rd Dec highs ahead of 0.6787 month high on a continuation of the recent recovery attempts. ------- What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too. ------- For more information, read our latest forex news.