The New Zealand Dollar dives for the third consecutive day, down in the week by over 1.48%, after hitting two-month lows of 0.5722 against the Greenback.
The NZD/USD trades at 0.5738, down 0.25% on the day
NZD/USD Price Forecast: Technical outlook After the Reserve Bank of New Zealand’s hawkish tilt, the NZD/USD rose from around 0.5800ish to near 0.6000 before recoiling beneath the 0.5750 figure. Broad US Dollar strength due to the US-Iran conflict, along with the pair diving below the 200-day Simple Moving Average (SMA) at 0.5833, a technical level that suggests an asset is bullish or bearish, depending on whether it’s above or below. Therefore, the NZD/USD path of least resistance is downwards.
The next support is the January 9 low of 0.5711, ahead of 0.5700. On further weakness, the next area of interest would be the April 3 swing low of 0.5679, before testing the psychological 0.5650 mark. For a bullish reversal, buyers must challenge the 0.5800 level to push NZD/USD towards the 200-day SMA.