NZDUSD Price Analysis: Currency Pair Drops 5 Times in a Row!

NZDUSD today suffered its fifth consecutive intraday decline, after hitting a three-week high ahead of Wednesday's European session. The Kiwi currency rate reversed after hitting the 200 SMA as markets anticipated the US Federal Reserve (Fed) Interest Rate Decision and growing expectations that there will be no interest rate hikes after seeing 10 consecutive Fed rate hikes.

As a result, the NZD/USD quote remains under pressure around 0.6155 despite the recent slight increase. Today's forex news about NZD/USD is summarized directly based on the technical analysis of the FxStreet website. In addition to failing to overcome the 200-bar Simple Moving Average (SMA), the decline in the NZD/USD pair was also influenced by the overbought RSI (14) line indication. However, the presence of a one-week-old ascending trend channel keeps buyers of the Kiwi currency pair optimistic. Therefore, the latest price decline may test the bullish short-term chart formation approaching the support level of 0.6130, with special attention to the support of the 100 SMA around 0.6085. It should be noted that several levels that have been marked since the end of May indicate that 0.6030-25 is the last line of resistance for NZD/USD buyers. On the other hand, the previously mentioned 200 SMA limits the immediate rise of the NZD/USD pair around 0.6175. Next, the 61.8% Fibonacci retracement level of the NZD/USD pair’s decline between May 19-31, which is around 0.6185, will come ahead of the upper line of the aforementioned channel, which is located around 0.6205. This will be a challenge for the buyers of the currency pair.