NZD/USD Price Analysis: Shows vertical fall ahead of RBNZ policy

NZD/USD has slipped below the 0.6200 support amid caution ahead of the RBNZ interest rate policy.
S&P500 futures have surrendered their entire gains added in Asia, portraying a decline in the risk appetite.
NZD/USD has corrected to near the upward-sloping trendline of the Ascending Triangle chart pattern.

Sagar Dua FXStreet

The NZD/USD pair has displayed a steep fall after failing to extend upside above the critical resistance of 0.6220 in the London session. The Kiwi asset has sharply dropped below the round-level support of 0.6200 as investors have turned cautious ahead of the interest rate decision by the Reserve Bank of New Zealand (RBNZ).

S&P500 futures have surrendered their entire gains added in Asia, portraying a decline in the risk appetite of the market participants. The US Dollar Index (DXY) has found an intermediate support around 101.68.

The USD Index will dance to the tunes of Wednesday’s Consumer Price Index (CPI) data, which will be printed at 12:30 GMT. Inflationary pressures are expected to decelerate as gasoline prices have dropped.

NZD/USD has corrected to near the upward-sloping trendline of the Ascending Triangle chart pattern, which is plotted from July 06 low at 0.6132 while the horizontal resistance of the aforementioned chart pattern is placed from July 06 high at 0.6220. The Kiwi asset is giving a tough fight to the 100-period Exponential Moving Average (EMA) at 0.6188.

Meanwhile, the Relative Strength Index (RSI) (14) is looking for support near 40.00. A slippage below the same could trigger bearish momentum.

A downside move below July 10 low at 0.6160 will expose the asset to June 29 low at 0.6116. A slippage below the latter would drag the asset to June 05 low at 0.6041.

Alternatively, a decisive break above June 22 high around 0.6220 will drive the asset towards June 14 high at 0.6236 followed by May 17 high at 0.6274.

NZD/USD two-hour chart

NZD/USD

Overview
Today last price	0.6185
Today Daily Change	-0.0026
Today Daily Change %	-0.42
Today daily open	0.6211

Trends
Daily SMA20	0.6167
Daily SMA50	0.617
Daily SMA100	0.6188
Daily SMA200	0.6177

Levels
Previous Daily High	0.622
Previous Daily Low	0.6166
Previous Weekly High	0.6221
Previous Weekly Low	0.6124
Previous Monthly High	0.625
Previous Monthly Low	0.599
Daily Fibonacci 38.2%	0.6199
Daily Fibonacci 61.8%	0.6187
Daily Pivot Point S1	0.6178
Daily Pivot Point S2	0.6145
Daily Pivot Point S3	0.6124
Daily Pivot Point R1	0.6232
Daily Pivot Point R2	0.6253
Daily Pivot Point R3	0.6286

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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