NZD/USD Price Analysis: Bearish RSI kills bulls’ apetite above 0.5800

• NZD/USD reverses entire RBNZ-led gains, as USD recovers.
• RBNZ delivers a hawkish 50 bps rate hike at its October meeting.
• The kiwi fails to sustain the upside above 0.5800.

NZD/USD has turned neutral on the day at around 0.5735, reversing the entire RBNZ rate hike outcome-induced rally above 0.5800.

The rebound in the US dollar across the board amid mixed market sentiment and pre-American jobs data anxiety, limiting the upside in the spot.

Further, markets assess the RBNZ hawkish rate hike announcement, especially after the central bank said that they had a debate over a 50 bps or a 75 bps rate hike. The kiwi central bank hiked the policy rates by 50 bps, as widely expected. In an immediate reaction to the RBNZ verdict, NZD/USD rallied nearly 80 pips from 0.5730 to 0.5807 highs.

Attention now turns towards the US ADP jobs report and the ISM Services PMI for fresh trading impetus in the pair.

From a short-term technical perspective, the bearish 100-Simple Moving Average (SMA) capped the NZD/USD upswing near 0.5815.

Although bulls remain hopeful so long as the solid support at 0.5690 is defended. Note that the 21 SMA crossed the 50 SMA for the upside, validating a bull cross on the said timeframe.

The Relative Strength Index (RSI) is holding above the midline, suggesting that any pullback in the price could be seen as a good dip buying opportunity.

Acceptance above the 100 SMA will call for a test of the next horizontal trendline resistance at around 0.5885.

On the downside, sellers will target the 0.5650 round level should the abovementioned powerful support of 0.5690 yield in.

NZD/USD: Four-hour chart

NZD/USD: Additional levels to consider