Pair testing crucial support, indicators suggests more consolidation

• NZD/USD declined on Monday to 0.62000, testing crucial support levels.
• The MACD indicator is printing flat green bars, suggesting that the rally might have come to an end.
• The RSI points south suggesting a mounting selling traction.

In Monday’s session, the NZD/USD pair declined by 0.40% to 0.6200, as buyers seem to be taking a breather, and the pair seems to have entered a consolidation period. It’s worth noticing that the pair approached highs since January above 0.6230.

The Moving Average Convergence Divergence (MACD) indicator is printing flat green bars, which suggests that the consolidation is likely to continue in the short term. The Relative Strength Index (RSI) scaped overbought conditions and is now pointing downwards suggesting that the bulls are taking a breather.

NZD/USD daily chart

The NZD/USD pair faces immediate support at 0.6200 and 0.6150. A break below 0.6150 could lead to a further decline towards 0.6100, which is a major support level. On the upside, immediate resistance can be found at 0.6255. A consolidation above this level could pave the way for a further rally to retest the 0.6300 zone.