NZD/USD Price Analysis: Could test psychological level of 0.6100 following February’s high
|- NZD/USD plunges after the RBNZ decides to hold OCR at 5.5%.
- A break below 0.6100 could lead the pair to navigate the region around the major support of 0.6050 and February’s low at 0.6037.
- The immediate resistance appears around the 23.6% Fibonacci retracement level of 0.6124 followed by the major barrier at 0.6150.
NZD/USD extends its losing streak for the fourth consecutive session, plunging to near 0.6110 during the Asian trading hours on Wednesday. The pair faces challenges as the Reserve Bank of New Zealand (RBNZ) decided to hold the Official Cash Rate (OCR) unchanged at 5.5% in its February monetary policy meeting.
The immediate support for the NZD/USD pair is anticipated at the psychological level of 0.6100. A break below this psychological support could put downward pressure on the pair to navigate the region around the major support level of 0.6050 followed by February’s low at 0.6037.
The lagging indicator Moving Average Convergence Divergence (MACD) suggests a momentum shift toward the downward sentiment for the NZD/USD pair. The MACD line is positioned above the centerline but shows convergence above the signal line.
Additionally, the technical analysis of the 14-day Relative Strength Index (RSI) lies below the 50 level, suggesting a bearish sentiment.
On the upside, the NZD/USD pair could find the immediate resistance around the 23.6% Fibonacci retracement level of 0.6124 followed by the major barrier at 0.6150. A breakthrough above this level could lead the pair to explore the resistance zone around the 38.2% Fibonacci retracement level of 0.6179 and the psychological level of 0.6200.
Further improvement of the NZD/USD pair could retest February’s high at 0.6219.
NZD/USD: Daily Chart
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