The NZD/USD pair experienced fluctuations amidst escalating geopolitical tensions in the Middle East following Iran’s alleged attack on potential Israeli military targets over the weekend. Reports from Reuters indicate that Israel successfully intercepted a significant portion of the projectiles launched by Iran, contributing to the volatile atmosphere.
During the European trading session on Monday, the NZD/USD pair stabilized around 0.5940. Analysts note that the Moving Average Convergence Divergence (MACD) analysis suggests a prevailing bearish sentiment for the pair. This is evident as the MACD line remains positioned below both the centerline and the signal line, indicating a downward trend trajectory.
Additionally, the 14-day Relative Strength Index (RSI) is currently below the 50 level, reinforcing the bearish sentiment. Traders are advised to monitor the region around the psychological support level of 0.5900, with a potential downside breakthrough likely to target further support at the major level of 0.5850.
Conversely, on the upside, immediate resistance for the NZD/USD pair is anticipated at the major level of 0.5950. A successful breach above this resistance level could propel the pair towards testing a formidable resistance zone. This zone is situated around the 23.6% Fibonacci retracement level of 0.5996, closely aligned with the psychological barrier of 0.6000 and the 14-day Exponential Moving Average (EMA) of 0.6001. Traders are advised to remain vigilant amid ongoing geopolitical developments for potential shifts in market sentiment.
