NZD/USD Price Forecast: Bounces off two-month low; seems vulnerable near mid-0.5700s
The NZD/USD pair bounces off an over two-month low, around the 0.5735 area touched earlier this Wednesday, though it lacks any follow-through buying.
The NZD/USD currency pair has recently rebounded from a two-month low near 0.5735, trading just above the mid-0.5700s level. This partial recovery appears to be lacking in momentum, as traders keep a close eye on the upcoming Federal Open Market Committee (FOMC) decision. The US Dollar (USD) has retreated after testing a two-week high, which has provided a slight boost for the NZD/USD pair.
Oil-related inflation concerns continue to support the notion of further Federal Reserve tightening, bolstering the greenback and limiting the NZD/USD pair's upside potential. Technical analysis indicates a bearish near-term outlook below the 200-day Simple Moving Average (SMA) at 0.5855 and a significant Fibonacci retracement band between 0.5765 and 0.5850.
The Moving Average Convergence Divergence (MACD) histogram remains negative, while the Relative Strength Index (RSI) approaches oversold territory. Nevertheless, momentum indicators suggest that the upside may face resistance, with immediate support at the 61.8% Fibonacci retracement (0.5765) and broader resistance at the 50.0% level (0.5807) and the 200-day SMA (0.5855).
Traders should remain cautious, watching for key support at the 78.6% Fibonacci retracement near 0.5704 and the recent swing low at 0.5627.
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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