NZD/USD Price Analysis: Kiwi drops post-testing strength of the consolidation breakdown

The NZD/USD pair has resumed its downside journey after a pullback move to near 0.6440 in the Asian session. The kiwi asset is unable to keep up its feet amid the release of lower-than-anticipated New Zealand Employment data. The major has shifted into a negative trajectory as the strength of the cheerful market mood is fading away.

S&P500 futures are facing heat in the Asian session despite a bullish Tuesday ahead of the interest rate decision by the Federal Reserve (Fed), and United States ADP Employment and ISM Manufacturing PMI data. The US Dollar Index (DXY) is looking to build a cushion around 101.70 after a declining move.

NZD/USD has sensed selling interest after testing the strength of the consolidation breakdown in the 0.6450-0.6470 range on a four-hour scale. Earlier, the Kiwi asset shifted into a negative trajectory after delivering a downside break of the Rising Wedge chart pattern, which indicates a bearish reversal after a loss in the upside momentum.

The 20-period Exponential Moving Average (EMA) at 0.6463 has acted as a major barricade for the New Zealand Dollar.

In addition to that, the Relative Strength Index (RSI) (14) has slipped into the bearish range of 20.00-40.00, which conveys an activation of the downside momentum.

For the downside move, a breakdown below January 31 low at 0.6412 will drag the Kiwi asset toward January 17 low at 0.6366 followed by January 12 low around 0.6300.

On the flip side, the asset needs to surpass Wednesday’s high at 0.6530 for a resumption in the upside, which will drive the asset toward June 3 high at 0.6576. A breach of the latter will expose the asset to the round-level resistance at 0.6600.

NZD/USD four-hour chart