- NZD / USD falls sharply on Wednesday following the RBNZ decision.
- NZD / USD breaks four days of bullish momentum in quick response to the RBNZ rate hike announcement.
- The momentum oscillator is clinging to the oversold zone with a neutral stance.
The NZD / USD breaks a four-day upward move at the start of the European session on Wednesday. After withdrawing some initial gains, the pair has lost momentum and has fallen sharply to daily lows. At the time of writing, the NZD / USD is trading at 0.6924, down 0.59% on the day.
NZD / USD daily chart
On the daily chart, the NZD / USD pair has recovered from the low of 0.6965 on September 29 to hit Monday’s high of 0.6984, but has lacked the strength to sustain the uptrend. That said, if the NZD / USD slides below the daily low, it would fall back to the horizontal support level of 0.6900.
The MACD indicator pierces below the midline. Any decline in the MACD could trigger more selling opportunities for the pair to reach the low reached on September 30 at 0.6859, followed by the horizontal support zone 0.6820.
On the other hand, if the price starts to move higher, it could test the psychological level of 0.7000. A daily close above the 50-day SMA at 0.7011 could push the NZD / USD higher towards the horizontal resistance level of 0.7035. This will also coincide with the break of the descending trend line from the high of 0.7171 made on September 3. Next, the bulls will target the September 23 high of 0.7094.
NZD / USD additional levels
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