NZD/USD Price Analysis: Retreats from the three-month highs, stays above 0.6150
- NZD/USD trims intraday gains as US Dollar attempts to rebound.
- Technical indicators suggest revisiting psychological resistance at 0.6200 aligned with the three-month high.
- A break below 0.6150 could push the pair to test 23.6% Fibo before the 0.6100 psychological support.
NZD/USD retraces its intraday gains as the US Dollar rebounds during the early European session on Wednesday. However, the NZD/USD pair received upward support after the release of the Reserve Bank of New Zealand (RBNZ) interest rate decision. RBNZ board members decided to keep the interest rate steady at 5.50%. This decision aligns with widespread expectations in the market.
The NZD/USD trades higher near 0.6160 at the time of writing. The 14-day Relative Strength Index (RSI) is above the 50 level, indicating a bullish sentiment for the NZD/USD pair.
This could encourage bulls of the pair to retest the psychological resistance region around 0.6200 aligned with the three-month high at 0.6208.
A breakthrough above the resistance area could support the NZD/USD pair to approach August’s high at 0.6217.
Moreover, the Moving Average Convergence Divergence (MACD) line, situated above the centerline and the signal line, could be a confirmation of bullish momentum in the market.
On the downside, a break below the major support level of 0.6150 could push the pair to fall to the 23.6% Fibonacci retracement at 0.6105 lined up with the psychological support at 0.6100 before the seven-day Exponential Moving Average (EMA) at 0.6092.