- NZD/USD rises due to more likelihood of a dovish policy stance by the Fed in the September meeting.
- MACD suggests that the short-term trajectory is favoring a sideways trend.
- The previous week’s bottom emerges as the initial support aligned to the 0.5850 psychological level.
- The key barrier level is represented by the 21-day Exponential Moving Average (EMA) at 0.5947.
NZD/USD extends gains in the third trading session, trading higher around 0.5930 during the Asian session on Monday as a result of the retreat in the US Dollar (USD). This pair is experiencing upward support due to the reduced likelihood of the US Federal Reserve (Fed) maintaining unchanged interest rates in the upcoming September meeting.
The Moving Average Convergence Divergence (MACD) line remains below the centerline but is positioned above the signal line. This configuration suggests that the recent momentum in the market is relatively subdued and moving sideways.
The pair may encounter initial support at the previous week’s bottom at 0.5859 level lined up with the 0.5850 psychological level. A decisive break below this level could potentially lead to further downward movement, with Kiwi bears targeting the region near the 0.5800 psychological level.
On the upside, a significant resistance level for the NZD/USD pair is represented by the 21-day Exponential Moving Average (EMA) at 0.5947, which is closely aligned with the 0.5950 psychological level.
If the pair manages to break convincingly above this level, it could potentially open the door for further upward movement, with the next target being the region around the 23.6% Fibonacci retracement level at 0.5980.
In the near term, the NZD/USD pair is expected to maintain a bearish outlook as long as the 14-day Relative Strength Index (RSI) remains below the 50 level. This suggests a continued downward momentum in the pair.
NZD/USD: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds below 0.6750 on US Dollar recovery
The AUD/USD pair edges lower to 0.6745, snapping the four-day winning streak during the early Asian session on Monday. The renewed US Dollar demand amid the cautious mood weighs on the pair.
EUR/USD weakens below 1.0850 as the leftist New Popular Front leads exit poll in French election
The EUR/USD pair trades on a weaker note near 1.0830 on Monday during the early Asian trading hours. The political uncertainty in France after the second voting round of French parliamentary elections on Sunday exerts some selling pressure on the Euro.
Gold edges lower below $2,400, PBoC refrains from gold purchases for second month
Gold price attracts some sellers near $2,385, snapping the three-day winning streak during the early Asian trading hours on Monday. The downtick of the yellow metal is backed by the modest rebound of the Greenback and the Chinese central bank paused Gold buying for the second month.
Ethereum records another day of heavy liquidations as Mt. Gox bearish pressure persists
Ethereum is down nearly 5% on Friday following the Mt. Gox BTC repayment, sparking more than $108 million in ETH liquidations. The repayment's supply strengthened the bearish momentum on Bitcoin, which spiraled into altcoins like ETH.
French election: It’s all over for Marine Le Pen, but the left weighs on the Euro
The deciding vote in the French Parliamentary elections closed this evening, and the exit poll suggests a shock result. The winning party is the left alliance, the popular front, which was pulled together to try and keep Le Pen’s far right National Rally party out of power.