NZD/USD sticks to Asian lows at 0.8574

FXStreet (Moscow) - NZD/USD has retraced from previously posted daily high at 0.8589; bearish sentiments drags it down to the lows of 0.8574.

RBNZ clipped Kiwi wings

NZD/USD have been consolidating losses below 0.8600 level as RBNZ effectively discouraged traders to buy kiwi. The officials were very explicit saying that strong currency will affect their outlook for monetary policy and might force them to pause the tightening cycle. On the intraday basis NZD/USD might continue its rangebound movements, while the nearest calendar risk - pending home sales report from the USA - might affect NZD/USD movements. The key levels to watch: 0.8595/00 on the upside and 0.8550 on the downside

What price levels and patterns have to be considered?

Resistance can be found ahead of spot at 0.8577 [Last Price], 0.8579 (Hourly 20 EMA), 0.8588 (Hourly 100 SMA), 0.8588 (Weekly Classic PP), 0.8589 (Daily High) and 0.8591 (Hourly 200 SMA).

Below, we can see support at 0.8576 (Daily Classic PP), 0.8575 (Daily Open), 0.8574 (Daily Low), 0.8567 (Weekly Low) and 0.8558 (Daily Classic S1).