Indicators favor consolidation, buyers must hold the 0.6230 area

• NZD/USD stood neutral around 0.6240, testing critical support.
• The RSI is declining, indicating potential selling pressure and a shift in momentum.

In Wednesday’s session, the NZD/USD traded around 0.6240 near crucial support levels. There are signals of a possible consolidation period as buyers pause after the rally which pushed the pair close to January’s highs near 0.6250.

The technical indicators paint a neutral picture with the bullish momentum flattening. The Relative Strength Index (RSI) has retreated from overbought territory and currently points downwards, indicating a potential shift in momentum and a build-up of selling pressure. A fall below the 50 level would further underscore this bearish sentiment. In addition, the Moving Average Convergence Divergence (MACD) prints flat green bars.

NZD/USD daily chart

The key support levels for the NZD/USD pair lie at 0.6200 and 0.6150. A breach of 0.6150 could trigger a deeper decline towards 0.6100, a significant support zone. On the flip side, immediate resistance can be found at 0.6255. A consolidation above this level could open doors for a move towards the 0.6300 area.