NZD/USD Price Analysis: Falling wedge, keeps the major trapped around 0.6150s

• The NZD/USD edges lower on Tuesday, down by a minimal 0.02%, as the Asian session begins.
• Asian equity futures tumble, set for a lower open on a dismal market mood.
• NZD/USD Price Analysis: Downward-to-neutral, unless buyers reclaim 0.6200, the majors will be under selling pressure.

The NZD/USD is almost flat as the Asian Pacific session begins, clings above the 0.6150 mark after hitting a daily high above 0.6200 but tumbled on market mood shift, which dented the appetite for risk-sensitive currencies like the kiwi and bolstering the greenback. At the time of writing, the NZD/USD is trading at 0.6151.

Also read:

• NZD/USD struggles around 0.6150 despite hot NZ inflation, and further RBNZ tightening
• Forex Today: Optimism proved ephemeral

NZD/USD Price Analysis: Technical outlook

The NZD/USD is still downward-to-neutral biased, printing a successive series of lower lows and lower highs,  further reinforcing the previously-mentioned. Also, the Relative Strength Index (RSI) exited from oversold conditions in mid-June and peaked around 45; since then, the RSI has been trending lower, indicating further selling pressure lies ahead. Nevertheless, NZD/USD buyers need to step in and achieve a daily close above the June 14 low at 0.6196 to shift the bias to neutral. Failure to do so, the NZD/USD will remain vulnerable.

NZD/USD Daily chart

NZD/USD price action formed a falling wedge, usually a sign of weak selling pressure. It means that the recent cycle lows have been recorded on less momentum, signaling that buyers might be outpacing sellers. Nevertheless, a flat RSI suggests NZD/USD sellers are booking profits, awaiting a fresh catalyst to record a new YTD low.

Therefore, the NZD/USD first support would be the 0.6150 figure. A break below will expose the 0.6100 figure. Once cleared, the next support would be the YTD low at 0.6060, followed by a test of the triple-zero mark at 0.6000.

NZD/USD Key Technical Levels