NZD/USD Price Analysis: Drops amid overbought RSI, eyes 21-HMA support

NZD sellers return after rejection just below 0.73 as USD rebounds.
The kiwi corrects after overbought RSI on the 1H chart.
21-HMA support holds the key for the kiwi optimists.

Dhwani Mehta FXStreet

NZD/USD is correcting from eight-week highs of 0.7287, as the US dollar is attempting a comeback across its main peers after the dovish Fed-induced sell-off.

Meanwhile, the recent surge in commodities and stock prices also benefits the higher-yielding kiwi.

At the time of writing, the Kiwi trades at 0.7255, modestly flat on the day, looking to test the bullish 21-hourly moving average (HMA) support at 0.7243.

The latest leg down in the spot can be attributed to the overbought conditions on the Relative Strength Index (RSI), as the oscillator turned south and dragged the price lower alongside.

A break below that level could expose the 0.7200 demand area, which will act as strong support.

NZD/USD hourly chart

Alternatively, if the 21-HMA holds, the bulls could attempt another bounce towards the multi-week highs of 0.7287, above which the 0.7300 threshold could be challenged.

A sustained move above the latter could threaten the March high of 0.7308.

NZD/USD additional levels to watch

NZD/USD

Overview
Today last price	0.7255
Today Daily Change	0.0000
Today Daily Change %	-0.00
Today daily open	0.7255

Trends
Daily SMA20	0.7122
Daily SMA50	0.7155
Daily SMA100	0.7158
Daily SMA200	0.6937

Levels
Previous Daily High	0.7268
Previous Daily Low	0.7188
Previous Weekly High	0.723
Previous Weekly Low	0.7121
Previous Monthly High	0.7308
Previous Monthly Low	0.6943
Daily Fibonacci 38.2%	0.7237
Daily Fibonacci 61.8%	0.7219
Daily Pivot Point S1	0.7206
Daily Pivot Point S2	0.7157
Daily Pivot Point S3	0.7126
Daily Pivot Point R1	0.7286
Daily Pivot Point R2	0.7317
Daily Pivot Point R3	0.7366

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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