NZD/USD Price Analysis: Kiwi bears need validation from 0.6090-85 support zone
- NZD/USD stays pressured around monthly low, bounces off key support line.
- Clear break of previously important trend line support, bearish MACD signals favor Kiwi sellers.
- RSI conditions suggest limited downside room; Convergence of 21, 50 DMAs adds to the upside filters.
NZD/USD bears take a breather around 0.6100 amid Thursday’s sluggish Asian session, after falling the most since early February the previous day.
The Kiwi pair’s latest inaction could be linked to the market’s mixed feelings about the Reserve Bank of New Zealand’s (RBNZ) next move as Governor Adrian Orr sounds hawkish but the central bank keeps peak rate unchanged with its 0.25% rate hike.
Also read: RBNZ’s Orr: Committee was confident in the level of restrictiveness of interest rates
Apart from RBNZ Governor Adrian Orr’s latest comments, the downbeat conditions of the RSI (14) line, also allow the NZD/USD pair to lick its wounds after a noteworthy fall the previous day.
With this, the Kiwi pair stays defensive around the key support line stretched from November 2022, around 0.6090. Also acting as a short-term downside filter is the yearly low marked in March around 0.6085.
As a result, the NZD/USD bears need to conquer the 0.6090-85 support zone to keep the reins.
Following that, the pair’s gradual fall towards the 50% and 61.8% Fibonacci retracement of October 2022 to February 2023 upside, respectively near 0.6025 and 0.5900, can be expected.
It should be noted, however, that the NZD/USD pair’s corrective bounce past the previous support line stretched from March, now immediate resistance around 0.6130, can convince short-term buyers.
In that case, a convergence of the 21-DMA and 50-DMA, near 0.6230-40, will be crucial to watch.
NZD/USD: Daily chart
Trend: Corrective bounce expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
