NZD/USD Price Analysis: Pair holds above key support as market digests RBNZ decision
- NZD/USD edges higher to 0.5705 on Wednesday, trading within a tight range following the RBNZ policy decision.
- Bears tested the 20-day SMA, but buyers defended the level, keeping downside risks contained for now.
- Momentum indicators remain flat but hold in positive territory, leaving room for a potential retest of support.
The NZD/USD pair traded with limited volatility on Wednesday, rising slightly to 0.5705 as the market digested the Reserve Bank of New Zealand’s (RBNZ) latest policy decision. Despite the subdued price action, sellers attempted to push the pair below the 20-day Simple Moving Average (SMA), but strong buying interest at that level prevented further declines.
Technical readings suggest indecision, with momentum indicators reflecting a neutral stance. The Relative Strength Index (RSI) remains flat at 56 but holds in positive territory, suggesting that bullish momentum is intact despite the lack of immediate upside traction. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram prints flat green bars, reinforcing the view that the pair is consolidating rather than trending decisively.
Looking ahead, while buyers successfully defended the 20-day SMA support, a retest cannot be ruled out. A sustained break below this level could shift sentiment in favor of the bears, exposing further downside risks. On the flip side, if the pair stabilizes above 0.5700, the next upside target could be the 100-day SMA near 0.5825, which would signal renewed bullish control.
NZD/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
