- NZD/USD fails again near the 0.6155-0.6160 resistance zone amid renewed USD buying.
- The mixed technical setup warrants some caution before opening aggressive directional positions.
- Continued selling below multi-month lows will pave the way for further losses.
The NZD/USD pair finds fresh selling on the first day of a new week and extends its steady intraday decline through the first half of the European session. The pair falls to the 0.6120 region in the last hour and erodes a part of Friday's positive move despite hawkish comments from Reserve Bank of New Zealand (RBNZ) officials.
Appearing before the Finance and Expenditure Committee on Monday, Governor Adrian Orr highlighted that inflation remains high, which is why the RBNZ has kept the cash rate at 5.5%. For his part, Christian Hawkesby, Deputy Governor for Financial Stability of the RBNZ, noted that house prices have stabilized in the last six months and that the system is prepared to face high interest rates. This, however, does little to provide any significant boost to the NZD/USD pair amid the emergence of some buying around the US Dollar (USD), bolstered by expectations that the Federal Reserve (Fed) will keep interest rates on hold. higher interest rates for longer.
From a technical point of view, the decline reaffirms a rigid horizontal barrier near the 0.6155-0.6160 region, which should now act as a fundamental point. Considering that the oscillators on the daily chart have been struggling to gain any significant traction, it will be prudent to wait for a sustained break through said hurdle before positioning for further gains. The NZD/USD pair could then accelerate the positive move towards the round level of 0.6200 and continue rising towards the horizontal resistance of 0.6225-0.6230. The momentum could extend further towards the 0.6250-0.6260 resistance zone, which if breached will nullify any short-term negative bias.
On the other hand, the 0.6100 level seems to protect the immediate decline before the important 200-day SMA, which is currently near the 0.6085 area. This is followed by the 0.6040-0.6035 zone, or a multi-month low that was reached in February. A convincing break below this last level will be considered a new trigger for the bears and will drag the NZD/USD pair towards the psychological level of 0.6000.
NZD/USD Daily Chart
NZD/USD technical levels to watch
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
