NZD/USD Price Hits Resistance as Fed Decision Looms

The New Zealand dollar (NZD/USD) experienced a brief rally on Wednesday but ultimately fell significantly. The currency's price reached resistance at the 0.58 level, which coincided with the 50% Fibonacci retracement level from its June selloff.

Christopher Lewis, a technical analyst and market commentator at DailyForex, notes that this resistance was also met by the 50-day EMA. He suggests that the Federal Reserve interest rate decision will likely have a significant influence on the NZD/USD price, particularly if the US remains hawkish.

If the US interest rates are raised, it's possible that the New Zealand dollar could struggle and send prices lower again. Lewis likes shorting the NZD/USD and does not recommend owning it at this time.