NZD/USD Price Analysis: Retreats from the three-month highs, stays above 0.6150
|- NZD/USD trims intraday gains as US Dollar attempts to rebound.
- Technical indicators suggest revisiting psychological resistance at 0.6200 aligned with the three-month high.
- A break below 0.6150 could push the pair to test 23.6% Fibo before the 0.6100 psychological support.
NZD/USD retraces its intraday gains as the US Dollar rebounds during the early European session on Wednesday. However, the NZD/USD pair received upward support after the release of the Reserve Bank of New Zealand (RBNZ) interest rate decision. RBNZ board members decided to keep the interest rate steady at 5.50%. This decision aligns with widespread expectations in the market.
The NZD/USD trades higher near 0.6160 at the time of writing. The 14-day Relative Strength Index (RSI) is above the 50 level, indicating a bullish sentiment for the NZD/USD pair.
This could encourage bulls of the pair to retest the psychological resistance region around 0.6200 aligned with the three-month high at 0.6208.
A breakthrough above the resistance area could support the NZD/USD pair to approach August’s high at 0.6217.
Moreover, the Moving Average Convergence Divergence (MACD) line, situated above the centerline and the signal line, could be a confirmation of bullish momentum in the market.
On the downside, a break below the major support level of 0.6150 could push the pair to fall to the 23.6% Fibonacci retracement at 0.6105 lined up with the psychological support at 0.6100 before the seven-day Exponential Moving Average (EMA) at 0.6092.
NZD/USD: Daily Chart:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.