• Failure to sustain above 61.8% Fibo retracement hopes a correction.
• The asset is oscillating in a slightly wider range of 0.6864-0.6998.
• The RSI (14) has slipped into a 40.00-60.00 range, which signals a consolidation ahead.

The NZD/USD pair is oscillating in a slightly wider range of 0.6864-0.6998 for the last two weeks and has been facing barricades near the psychological resistance of 0.7000.

On the daily scale, the pair has sensed selling pressure above 61.8% Fibonacci retracement (placed from 21 October 2021 high at 0.7219 to 28 January low at 0.6529) at 0.6956 and has been dragged lower. The trendline placed from the 28 January low at 0.6529 will continue to act as major support going forward.

The 20- and 50-period Exponential Moving Averages (EMAs) at 0.6895 and 0.6836 respectively are scaling higher, which signals more upside ahead.

However, the Relative Strength Index (RSI) (14) has slipped into a 40.00-60.00 range, which signals a consolidation ahead. Kiwi bulls have lost control after the RSI (14) failed to sustain in a 60.00-80.00 range.

A breach of the psychological resistance of 0.7000 is likely to underpin the kiwi bulls and will drive the asset higher towards the 19 November 2021 high at 0.750, followed by the 22 October 2021 low at 0.7131.

On the flip side, if the asset drop below 50% Fibo retracement at 0.6875, greenback bulls may get strengthened, which will drag the major towards 50-EMA at 0.6836. Breach of the latter will send the asset towards March 15 low at 0.6728.

NZD/USD daily chart