Indicators favor consolidation, buyers need to hold the 0.6230 area

• NZD/USD remained neutral around 0.6240, testing critical support.
• The RSI is down, indicating potential selling pressure and a change in momentum.

In Wednesday’s session, NZD/USD traded around 0.6240 close to crucial support levels. There are signs of a possible consolidation period as buyers pause after the rally that pushed the pair close to January highs near 0.6250.

The technical indicators depict a neutral picture, with the flattening of the optimistic impulse. The Relative Strength Index (RSI) has retreated from overbought territory and is currently looking bearish, indicating a potential change in momentum and increased selling pressure. A drop below the 50 level would further emphasize this bearish sentiment. Additionally, the Moving Average Convergence Divergence (MACD) prints green flat bars.

NZD/USD Daily Chart

Key support levels for the NZD/USD pair lie at 0.6200 and 0.6150. A break of 0.6150 could trigger a deeper decline towards 0.6100, a significant support area. On the other hand, immediate resistance can be found at 0.6255. A consolidation above this level could open doors for a move towards the 0.6300 area.