NZDUSD has been trading within a consolidation area with upper boundary the 0.7420 resistance level and lower boundary the 0.7285 support barrier. The narrow range has been holding since January 24 where the price reached a five-month high of 0.7436, though it ended the day in the red and the bullish phase weakened.
In the 4-hour chart, short-term indicators are signaling a bearish movement. The Relative Strength Index (RSI) is flattening near the 50 level, while the MACD oscillator is weakening in the positive territory. Also, the latter oscillator recorded a bearish crossover with its trigger line, indicating further losses.
If prices extend the downward pressure, immediate support could come at the 0.7300 strong psychological level. Below that, the price could hit 0.7285, which is near the 23.6% Fibonacci retracement level of the last big upward movement with the low of 0.6780 and high of 0.7436. As a side note, the price needs to go through the 20 and 40 simple moving averages that stand near the current market price of 0.7350.
In the event of an upside reversal, the upper boundary of the Bollinger Band at 0.7400 could act as a resistance barrier. A jump above the aforementioned obstacle could shift the short-term outlook to bullish as it could take the pair towards the 0.7436 barrier.
