Anna 
The NZD/USD pair extended its downward trajectory for the third consecutive session as the US Dollar (USD) weakened on the backdrop of dovish signals from the Federal Reserve regarding the future path of interest rates. Market sentiment increasingly favors the possibility of interest rate cuts by the Fed commencing in June, leading to a decline in the pair’s value. During the European session on Monday, the pair consolidated around the psychologically significant level of 0.6000.
A critical barrier for the NZD/USD pair is observed at the major level of 0.6050. Should the pair breach this level, it may encounter resistance around the 14-day Exponential Moving Average (EMA) of 0.6076 and the 23.6% Fibonacci retracement level of 0.6086, with further upside potential testing the psychological level of 0.6100.
Technical indicators suggest a bearish sentiment for the NZD/USD pair. The Moving Average Convergence Divergence (MACD) analysis indicates a prevailing downward trend, with the MACD line positioned below the centerline and diverging below the signal line. Additionally, the 14-day Relative Strength Index (RSI) is below the 50 level, further confirming the bearish sentiment.
On the downside, key support for the NZD/USD pair is anticipated at the major level of 0.5950. A breach below this level could exert downward pressure, potentially leading the pair to find further support around the psychological level of 0.5900.
Overall, the NZD/USD pair continues its decline amidst dovish sentiment surrounding the Federal Reserve’s stance on interest rates, with technical indicators signaling a bearish outlook for the pair’s movement in the near term.
