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NZD/USD Price Analysis: Bearish RSI suffocates bulls over 0.5800

As the USD rebounds, the NZD/USD reverses the whole RBNZ-led gain. At its meeting in October, the RBNZ delivered an aggressive rate rise of 50 basis points. The NZD is unable to maintain its upward momentum over 0.5800.
At the current exchange rate of about 0.5735, the NZD/USD pair has reversed the RBNZ rate rise outcome-induced surge above 0.5800.

The comeback in the value of the US dollar across the board in the context of mixed market mood and concern before the release of American employment data limited the gain in the spot.

In addition, markets evaluate the RBNZ’s hawkish statement on the rate rise, particularly after the central bank said that they debated whether or not to implement a rate hike of 50 or 75 basis points. As was widely anticipated, the Reserve Bank of New Zealand (RBNZ) increased its benchmark interest rate by 50 basis points (bps). NZD/USD soared roughly 80 pips from 0.5730 to 0.5807 highs in response to the RBNZ decision.

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For new trading impetus in the pair, attention is currently being focused on the ADP employment data in the United States and the ISM Services PMI.

The bearish 100-Simple Moving Average (SMA) around 0.5815 halted the NZD/USD rise in the short term.

Despite this, bulls remain optimistic as long as the strong support located around 0.5690 is protected. Note that the 21 simple moving averages moved over the 50 moving averages in an upward direction, verifying a bull cross on the period above.

The Relative Strength Index (RSI) maintains its position above the center line, which indicates that a potential purchasing opportunity exists at lower prices should there be a price retracement.

If a close is achieved above the 100 simple moving average, there will be a need for a test of the next horizontal trendline resistance located close to 0.5885.

Should the solid support noted earlier, located around 0.5690, give way, sellers would want to take advantage of the situation by targeting the round level of 0.5650.

NZD/USD 4-hour chart

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