NZD/USD Price Forecasts: Kiwi loses momentum after rejection at 0.5800
- NZD/USD treads water below 0.5800 with technical indicators turning lower.
- FX markets move within tight ranges, awaiting US employment figures.
- Kiwi's rejection at 0.5800 has printed the left shoulder of a potential H&S pattern.
The New Zealand Dollar is moving without a clear bias against the US Dollar, trading within a tight range around 0.5780 on Wednesday. Technical indicators, however, are turning lower after failing to break above the 0.5800 line on Tuesday.
Risk sentiment remains subdued, with investors looking from the sidelines ahead of the release of key US employment and services sector activity figures, which are expected to provide further insight into the US Federal Reserve’s (Fed) rate path.
Technical Analysis: A bearish Head & Shoulders pattern in progress
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In the 4-hour chart, NZD/USD trades at 0.5785, little changed on a daily basis. The Moving Average Convergence Divergence (MACD) holds slightly above the zero line after turning positive, suggesting only modest bullish impetus, while the Relative Strength Index (RSI) is flattening around the 50 level, showing a lack of direction.
The rejection at 0.5800 keeps the 0.5735 area on the bears' focus. This is the neckline of a bearish H&S pattern. A breach of that level would confirm a trend shift, adding pressure towards the November 28 lows, near 0.5700, and the intra-day support, at 0.5662. The H&S's measured target is at 0.5625.
On the upside, immediate resistance aligns at 0.5814 (Tuesday's high), followed by the December 23 high, at 0.5853.
(The technical analysis of this story was written with the help of an AI tool)
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
