NZD/USD Price Analysis: Plummets from a four-month high, drops below 0.6200
- NZD/USD hit a three-month high, past the 0.6200 figure, but high US bond yields are undermining the pair.
- Further downside is seen if the pair slumps below 0.6100, with the 200-DMA in sight.
- Buyers keeping the NZD/USD exchange rate above 0.6200, to pave the way for 0.6300.
NZD/USD retreats late in the Monday North American session after rallying to a new four-month high of 0.6226, but a repricing for a less dovish US Federal Reserve witnessed a jump in US bond yields. Consequently, the pair tumbled more than 0.80% and trades at 0.6154.
The NZD/USD uptrend remains intact, though it is subject to a pullback. If the pair slides past the 0.6150 figure, the next support would be the November 30 swing low at 0.6120. Up next the 200-day moving average (DMA) at 0.6089. A breach of the latter and the pair could shift neutral if it slumps below the October 11 high turned support at 0.6055.
On the other hand, if NZD/USD buyers reclaim 0.6200, further upside is seen above 0.6226, followed by a test of the July 27 high at 0.6273. If those two supply zones are erased, a jump to 0.6300 is on the cards.
NZD/USD Price Analysis – Daily Chart
NZD/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
