NZD/USD Price Analysis: Seems to move below 0.6100 followed by January’s low
- NZD/USD moves on a downward trajectory after softer Business NZ PMI data.
- A breach below 0.6100 could lead the pair to retest January’s low at 0.6088.
- The seven-day EMA at 0.6150 could act as an obstacle followed by the 23.6% Fibonacci retracement level at 0.6165.
NZD/USD continues its losing streak for the fifth straight session, trading lower near 0.6110 during the European session on Friday. The Business NZ Performance of Manufacturing Index (PMI) disclosed a decline in business activity within New Zealand's manufacturing sector, registering a figure of 43.1 in December compared to the previous reading of 46.5. This softer-than-expected result exerted downward pressure on the New Zealand Dollar (NZD), subsequently impacting the NZD/USD pair.
The technical analysis for the NZD/USD pair suggests a bearish sentiment in the market with the placement of the Moving Average Convergence Divergence (MACD) line below the centreline and exhibiting divergence below the signal line.
Additionally, the lagging indicator 14-day Relative Strength Index (RSI), is positioned below the 50 level, which signals a confirmation of the weaker momentum for the NZD/USD pair.
The NZD/USD pair finds immediate support at the psychological level at 0.6100. A firm break below the latter could put downward pressure on the pair to revisit January’s low at 0.6088 followed by the major support at 0.6050 level.
On the upside, the seven-day Exponential Moving Average (EMA) at 0.6150 could act as the key barrier for the NZD/USD pair. If the pair surpasses the seven-day EMA, it could provide support to underpinning the NZD/USD pair to explore the region around 23.6% Fibonacci retracement level at 0.6165 followed by the psychological resistance level at 0.6200.
NZD/USD: Daily Chart:
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
