NZD/USD Price Analysis: Extends losses near 0.5900 after RBNZ decision

NZD/USD continues the losses on the third day amid risk-off sentiment due to US Federal Reserve’s (Fed) interest rates trajectory. Additionally, the Reserve Bank of New Zealand (RBNZ) decided to hold the Official Cash Rate (OCR) unchanged at 5.5%, as widely expected, which adds up the pressure on the Kiwi pair.

The prevailing downward momentum in the pair indicates a bearish bias, as the 14-day Relative Strength Index (RSI) remains below the 50 level. The NZD/USD pair trades lower around 0.5900 psychological level during the Asian session on Wednesday, following the support region around September’s low at 0.5859 lined up with 0.5850 major level.

A firm break below the latter could influence the Kiwi bears to navigate the region around 0.5800 psychological level.

On the upside, the immediate barrier is likely at the seven-day Exponential Moving Average (EMA) at 0.5931, aligned with the major level at 0.5950. If the pair breaks above this level, it could open the doors for further exploration towards the region around the 23.6% Fibonacci retracement at 0.5980.

The Moving Average Convergence Divergence (MACD) indicator is signaling weakness for bulls of the NZD/USD pair, with the MACD line positioned below the centerline and shows convergence above the signal line. This setup indicates potentially weak momentum in the price movement.

NZD/USD: Daily Chart