NZD/USD Price Analysis: Breaks eight-day-long bearish spell above 0.5900 support confluence

• NZD/USD prints the first daily gain in nine while bouncing off the lowest level since November 2022.
• Convergence of Golden Fibonacci Ratio, 5.5-month-old descending support line joins oversold RSI to trigger corrective bounce.
• Recovery needs validation from 0.6025-30 hurdle to convince Kiwi buyers.

NZD/USD consolidates the weekly losses, the fourth consecutive one, amid a sluggish Friday morning as the Kiwi pair bounces the 0.5900 key support to print the first daily gain, so far, in nine. That said, the quote clings to mild gains around 0.5930 by the press time.

NZD/USD dropped to the lowest level since November the previous day amid broad US Dollar strength and fears of the no rate hike from the Reserve Bank of New Zealand (RBNZ) in near futures.

However, a convergence of the 61.8% Fibonacci retracement, also known as the Golden Fibonacci Ratio, of the Kiwi pair’s uptrend from October 2022 to February 2023, as well as a downward-sloping support line from early March, close to 0.5900, triggered the quote’s rebound.

The corrective moves also gained support from the oversold RSI and stay present despite lacking upside momentum, as portrayed by the bearish MACD signals.

It’s worth noting that a nine-month-old horizontal resistance area around 0.5880-90 restricts immediate upside of the NZD/USD pair.

Following that, a descending trend line from the mid-July joins the 50% Fibonacci retracement to highlight the 0.5925-30 resistance as the final defense of the NZD/USD bears.

Meanwhile, a downside break of the 0.5900 could quickly drag the Kiwi pair towards the early October 2022 peak surrounding 0.5815, a break of which will highlight the previous yearly bottom of 0.5511 for the NZD/USD bears.

NZD/USD: Daily chart

Trend: Limited upside expected