NZD/USD Price Analysis: Sellers pause at 0.6000 after over 1.0% fall on RBNZ day

NZD/USD remains on the back foot after RBNZ.
The RBNZ held OCR steady at 0.25% but expanded QE, policymakers spoke dovish.
A five-week-old support line on the bears’ radar below 0.6000.
61.8% Fibonacci retracement, April high can lure buyers on the upside.

Anil Panchal FXStreet

Having dropped over 1.0% following the RBNZ’s dovish appearance, NZD/USD bears catch a breath around 0.6000, down 1.15% on a day, ahead of the European open on Wednesday.

Also Read: RBNZ Minutes: A negative OCR will become an option in future

While the expansion of Quantitative Easing (QE) and fears of negative rates offer fundamental weakness to the pair, it’s a break below 61.8% Fibonacci retracement of March month fall keeps technical analysis in favor of the sellers.

Read: RBNZ’s Orr: Monetary Policy Committee is prepared to do whatever it takes

Even so, a sustained break below 0.6000 will be needed for the further downside towards a multi-day-old support line, near 0.5970.

Though, pair’s weakness past-0.5970 might not hesitate to challenge 50% Fibonacci retracement and April low, respectively around 0.5960 and 0.5910.

On the contrary, a daily closing beyond 61.8% Fibonacci retracement level of 0.6075 can renew buying pressure towards April month high surrounding 0.6175. Additionally, 100-day SMA near 0.6265 can please the bulls afterward.

NZD/USD daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	0.6012
Today Daily Change	-68 pips
Today Daily Change %	-1.12%
Today daily open	0.608

Trends
Daily SMA20	0.6044
Daily SMA50	0.6027
Daily SMA100	0.6271
Daily SMA200	0.6337

Levels
Previous Daily High	0.6124
Previous Daily Low	0.6041
Previous Weekly High	0.6148
Previous Weekly Low	0.5994
Previous Monthly High	0.6176
Previous Monthly Low	0.5843
Daily Fibonacci 38.2%	0.6092
Daily Fibonacci 61.8%	0.6073
Daily Pivot Point S1	0.604
Daily Pivot Point S2	0.5999
Daily Pivot Point S3	0.5957
Daily Pivot Point R1	0.6122
Daily Pivot Point R2	0.6164
Daily Pivot Point R3	0.6205

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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