NZD/USD Price Analysis: Tests the key barrier of 0.5950; next resistance at 14-day EMA
- NZD/USD consolidates amid heightened geopolitical tensions after Iranian attack on Israel.
- Technical analysis suggests a confirmation of a tepid momentum for the pair.
- The level of 0.5950 appears as the immediate barrier followed by the 23.6% Fibo level of 0.5996 and the psychological level of 0.6000.
NZD/USD moves back and forth amid heightened geopolitical tensions in the Middle East after Iran attacked potential Israel military on Saturday by launching explosive drones and missiles targeting military installations in Israel. However, Israel successfully intercepted most of the incoming projectiles, according to Reuters. The NZD/USD pair consolidates around 0.5940 during the European session on Monday.
According to the Moving Average Convergence Divergence (MACD) analysis, a prevailing downward sentiment is indicated for the NZD/USD pair. This is evidenced by the MACD line positioned below the centerline and the signal line, signaling a bearish trend.
Furthermore, the 14-day Relative Strength Index (RSI) is below the 50 level, providing additional confirmation of the bearish sentiment, which could prompt traders of the NZD/USD pair to navigate the region around the psychological level of 0.5900. A break below the latter could influence the NZD/USD pair to approach further support at the major level of 0.5850.
On the upside, the NZD/USD pair could find immediate resistance at the major level of 0.5950. A breakthrough above this level could lead the pair to test a strong resistance area around the 23.6% Fibonacci retracement level of 0.5996, aligned with the psychological level of 0.6000 and 14-day Exponential Moving Average (EMA) of 0.6001.
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.
