- NZD/USD breaks below the key level of 0.6100 after retreating from two days of gains.
- The pair could find the resistance zone around the 23.6% Fibonacci retracement level of 0.6124 and the 50-day EMA at 0.6128.
- 14-day RSI suggests the NZD/USD pair could test the key support area around the major level of 0.6050 and the weekly low at 0.6049.
NZD/USD moves lower after registering profits for two consecutive days, edging lower to near 0.6090 during the Asian hours on Friday. The US Dollar (USD) improves on market optimism ahead of US Producer Price Index (PPI) data and Michigan Consumer Sentiment Index scheduled to be released later in the North American session.
The NZD/USD pair could find immediate resistance at the psychological level of 0.6100. A firm break above this key level could exert upward support for the NZD/USD pair to explore the resistance zone around the 23.6% Fibonacci retracement level of 0.6124 in conjunction with the 50-day Exponential Moving Average (EMA) at 0.6128. Further targets will be the major barrier of 0.6150 aligned with the weekly high at 0.6153.
The technical analysis of the NZD/USD pair suggests a subdued momentum in the market. The Moving Average Convergence Divergence (MACD) line is situated below the centerline but above the signal line. Traders would like to wait for MACD to suggest a clear directional trend.
Furthermore, the lagging indicator 14-day Relative Strength Index (RSI) lies below the 50 level, suggesting a weaker sentiment for the NZD/USD pair to test the key support area around the major level of 0.6050 in conjunction with the weekly low at 0.6049.
A collapse below this support region could put downward pressure on the NZD/USD pair to navigate the region around February’s low at 0.6037 followed by the psychological support of 0.6000 level.
NZD/USD: Daily Chart
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