NZD/USD Price Forecast: Dips below 0.5950, fresh weekly low as USD firms ahead of US PCE
The NZD/USD pair comes under some renewed selling pressure on Wednesday and drops to a fresh weekly low, around the 0.5945 region during the early European session.
The New Zealand Dollar against the US Dollar (NZD/USD) dipped to a fresh weekly low near 0.5945 on Wednesday, according to the provided material. This decline occurred amid renewed selling pressure and occurred as the US Dollar (USD) strengthened ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index.
Additionally, Federal Reserve Chair Kevin Warsh's upcoming speech at the annual Jackson Hole Symposium was also expected to influence market sentiment. However, the situation could potentially stabilize due to the Reserve Bank of New Zealand's hawkish stance and the easing of inflation concerns. The NZD/USD pair is currently supported by its position above the 200-period Exponential Moving Average (EMA) and an upward trendline, which act as underlying demand for the pair.
Nonetheless, repeated failures to surpass the 0.6000 psychological level have raised caution for bullish traders. The Relative Strength Index (RSI) is currently at 46, indicating a consolidative rather than impulsive momentum. The Moving Average Convergence Divergence (MACD) has also slipped below zero, suggesting that upside pressure is weak, albeit still supported by a broader structural floor near the confluence around 0.5875.
As long as NZD/USD remains above this support level on a closing basis, dips could attract buyers. However, bulls may need to witness sustained strength and acceptance above the 0.6000 mark before positioning for an extension of the two-month-old uptrend.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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