Today, at the end of the 12/9 US session, the Reserve Bank of New Zealand announced a rate cut from 2.75% to 2.50% on its official cash rate (OCR). The NZD market had some jitters after the announcement as we can see in the NZD/USD 1H chart:NZD/USD 1H Chart 12/10(click to enlarge)We can see that there was an initial bearish reaction which made a new low on the month. However, there was strong buying here, with support factors of a rising trendline and a previous resistance area. The whipsaw reaction shows the prevailing bullish trend still has momentum. From a fundamental perspective, this reaction could be based on the assumption that there will be no more rate cut after this. This might not be a bullish indicator for the medium-term against the USD, but it might extend the short-term bullish trend. NZD/USD Daily Chart 12/10(click to enlarge)In the daily chart we can see that the short-term bullish trend is in the context of a consolidation. The prevailing trend has been bearish, and that is why I said the medium-term outlook might still be bearish. Still, in the short-term, it looks like momentum can take price up towards the October high around 0.8885, where price would also be challenged by the 200-day simple moving average.