NZD/USD Tumbles After Fed Rate Hike, Sellers Gain Momentum
The New Zealand Dollar has extended its losses for the second consecutive trading session after last week's Federal Reserve rate hike and hawkish comments from Fed officials on Monday. The NZD/USD pair is currently trading at 0.5717, down 0.13%.
From a technical perspective, the market structure indicates that the NZD/USD remains in consolidation mode, with the pair hovering near its two-month low of 0.5703 reached on September 16. The Relative Strength Index (RSI) suggests that sellers are gaining momentum, and if the index turns oversold, it could lead to further losses.
According to technical analysis, if NZD/USD breaks below 0.5700, a potential move to the July 8 low of 0.5671 is possible. Below this level, key support areas include 0.5650 and the June 26 low of 0.5626.
On the upside, if Kiwi buyers can push the pair above the September 18 high of 0.5787, a move to 0.5800 is possible. However, the 100-day Simple Moving Average (SMA) at 0.5833 and the confluence of the 200- and 50-day SMA at 0.5853 will likely provide significant resistance.