NZD/USD Price Analysis: Fades bounce off 200-DMA as sellers attack 0.6200

• NZD/USD takes offers to refresh intraday high while reversing below 50-DMA.
• Steady RSI, 200-DMA can challenge short-term Kiwi bears.
• Buyers need validation from previous support line from early March.

NZD/USD reverses the previous day’s recovery by renewing the intraday low to 0.6190 during early Wednesday. In doing so, the Kiwi pair takes a U-turn from slightly below the 50-DMA hurdle, as well as fades the early week’s bounce off the 200-DMA.

It’s worth noting that the steady RSI (14) line joins the Kiwi pair’s inability to cross the DMA band to suggest further sideways performance of the NZD/USD price between the 50-DMA and 200-DMA, respectively near 0.6230 and 0.6160.

Given the quote’s latest U-turn from the 50-DMA, the quote is likely to drop towards the 200-DMA support of 0.6160.

However, the quote’s weakness past 0.6160 could make NZD/USD vulnerable to test the yearly low marked in March around 0.6080.

Following that, the 50% and 61.8% Fibonacci retracement levels of the Kiwi pair’s run-up from October 2022 to February 2023, around 0.6025 and 0.5900 in that order, could lure the bears.

On the flip side, recovery moves not only need to stay beyond the 50-DMA hurdle of 0.6230 but should also mark a successful break of the previous support line stretched from early March, close to 0.6315, to convince the NZD/USD bulls.

Should that happen, the Kiwi pair buyers could easily refresh the monthly high, currently around 0.6385.

NZD/USD: Daily chart

Trend: Limited downside expected