Testing crucial support pairs, indicators suggest more consolidation

• NZD/USD fell to 0.62000 on Monday, testing crucial support levels.
• The MACD indicator is showing flat green bars, suggesting that the rally may have ended.
• The RSI is pointing south suggesting increasing selling traction.

In Monday’s session, the NZD/USD pair fell 0.40% to 0.6200, as buyers seem to have calmed down and the pair appears to have entered a period of consolidation. It is worth noting that the pair came close to January highs above 0.6230.

The MACD (Moving Average Convergence Divergence) indicator is showing flat green bars, suggesting that consolidation is likely to continue in the short term. The Relative Strength Index (RSI) has escaped overbought conditions and is now pointing down, suggesting the bulls are taking a break.

NZD/USD Daily Chart

NZD/USD 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 new rally to retest the 0.6300 area.