NZD/USD Price Analysis: Pair struggles to find direction within range
- NZD/USD edges slightly lower to 0.5670 on Wednesday, maintaining its position within a narrow trading band.
- RSI dips, showing a mild loss of momentum while staying in positive territory.
The NZD/USD pair continued its range-bound behavior on Wednesday, slipping marginally to 0.5670 after testing the upper boundary of its recent 0.5540–0.5690 consolidation zone. While the pair has experienced pockets of volatility, it has yet to establish a definitive directional bias, leaving traders cautious about committing to either side.
Technical indicators reflect the pair’s current state of indecision. The Relative Strength Index (RSI) has softened slightly to 51, staying within positive territory but pointing to waning bullish enthusiasm. Conversely, the Moving Average Convergence Divergence (MACD) histogram remains supportive, with rising green bars signaling a potential shift toward upward momentum if buyers can sustain their efforts.
To escape its current range, the pair would need to break decisively above the 0.5690 resistance, potentially opening the door for a move toward the 0.5730 level. On the flip side, a retreat below 0.5540 could pave the way for further downside, with 0.5500 emerging as a key support level to watch.
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.
