- NZD/USD will drop to 0.5700 on Tuesday after achieving its highest level since late January.
- The bulls remain in control as long as the husband exceeds SMA for 20 days, with RBNZ decision to lead the next step.
The New Zealand dollar faced the pressure pressure on Tuesday, as it decreased by 0.58 % again the US dollar to 0.5700 after a rally last week, the couple witnessed its highest levels since late January above 0.5730. Despite the withdrawal, the broader view is still positive, as the simple moving average for 100 days (SMA) is still at 0.5825 in focus.
In the future, market participants are preparing for the decision of the New Zealand Reserve Policy (RBNZ) during the Asian session. The central bank’s guidelines are likely to dictate the next main step for the husband, as the charity tone may lead to igniting the bullish momentum, while the Dovish position can extend constant withdrawal.
Meanwhile, technical indicators indicate a natural correction rather than a shift in the direction. The RSI has decreased sharply to 56 but is still in a positive area, indicating that buyers are still in control. Meanwhile, the graph for the contrast to the moving medium rapprochement (MACD) is printed ascending green bars, indicating that the upscale momentum has not been completely exhausted. However, the SMA break for 20 days can be balanced in favor of the bears.