NZD/USD Price Analysis: Stays above 0.6210 after retreating from five month high

• NZD/USD extends its gains as the US Dollar loses ground on subdued Treasury yields.
• Technical indicators suggest revisiting a five-month high at 0.6249 and the major resistance at 0.6250.
• A firm break below the 0.6200 level could lead the pair to navigate the 23.6% Fibonacci retracement at 0.6165.

NZD/USD continues its winning streak for the fourth successive day on the dovish Federal Reserve’s outlook on interest rates trajectory in 2024. The NZD/USD pair received upward support from the Fed’s decision not to adjust its current interest rate stance. Additionally, Kiwi’s Q3 Gross Domestic Product (YoY) declined by 0.6% against the expected growth of 0.5%. The GDP (QoQ) fell by 0.3% as compared to the 0.2% market expectations.

The NZD/USD pair trades higher near 0.6210 during the European session on Thursday post pulling back from the five-month high at 0.6249 aligned with the major resistance level at 0.6250. The 14-day Relative Strength Index (RSI) is above the 50 level, indicating a bullish sentiment to retest the latter.

A breakthrough above the resistance area could support the NZD/USD pair to explore the psychological region around the 0.6300 level. Moreover, the Moving Average Convergence Divergence (MACD) line, situated above the centerline and the signal line, could be a confirmation of bullish momentum in the market.

On the downside, a break below the psychological support level of 0.6200 could push the pair to fall to the 23.6% Fibonacci retracement at 0.6165 before the major support at 0.6150. A decisive break below the level could lead the NZD/USD pair to navigate the region around the 14-day Exponential Moving Average (EMA) at 0.6138 followed by the 38.2% Fibonacci retracement at 0.6090 level.

NZD/USD: Daily Chart: