NZDUSD stays near recent lows post RBNZ rate decision.
- NZDUSD loses ground after RBNZ rate decision
- Sellers could stay in charge; focus on 0.5830
NZDUSD opened slightly lower on Wednesday as the RBNZ kept interest rates unchanged but left some traders disappointed, providing vague indications about future rate hikes.
With the RSI diving back below its 50 neutral mark and the MACD staying within the negative region, downside movements look more likely than upside ones in the short term.
A durable increase above the 20-day simple moving average (SMA) at 0.5920 could be necessary for the price to revisit the tough 0.6000 barrier. If that wall collapses this time, the next obstacle could pop up around the 38.2% Fibonacci retracement of the 0.6410-0.5858 down leg at 0.6085. The descending line drawn from April 2022 could next challenge the bulls along with the 50% Fibonacci mark of 0.6150, while slightly higher, traders will look for an extension above the 200-day SMA before they target the 61.8% Fibonacci of 0.6200.
Otherwise, a slide below August’s low of 0.5858 could take a breather around the descending line from March 2023 at 0.5830. Should the bears breach that floor, the sell-off could pick up pace towards the 0.5770 base. Another defeat there may cause a sharper decline to 0.5670.
In brief, NZDUSD could stay in bear mode in the coming sessions, likely attracting new sellers if the decline extends below 0.5830.