NZD/USD Price Analysis: Buyers meet critical resistance near 0.6980

• NZD/USD fell sharply on Wednesday following the RBNZ decision.
• Kiwi snaps four-session upside momentum in a quick response to RBNZ rate hike announcement.
• Momentum oscillator holds on to the oversold zone with a neutral stance.

NZD/USD snaps four-session upside movement in the initial European trading hours on Wednesday. After posting some initial gains, the pair losses momentum to book fresh daily losses. At the time of writing, NZD/USD is trading at 0.6933, down 0.45% for the day.

NZD/USD daily chart

On the daily chart, the NZD/USD pair has recovered from the low of 0.6965 made on September 29 to touch  Monday’s high at 0.6984 but lacked the strength to keep up the upside trend. Having said that, if NZD/USD slides below the session’s low it would go back to meet the 0.6900 horizontal support level.

The Moving Average Convergence Divergence (MACD) indicator pierces below the midline. Any downtick in the MACD could trigger more selling opportunities for the pair to reach the low made on September 30 at 0.6859 followed by the 0.6820 horizontal support zone.

Alternatively, if the price starts moving higher, it could test the psychological 0.7000 level. A daily close above the 50-day Simple Moving Average (SMA) at 0.7011 could push NZD/USD higher toward the 0.7035 horizontal resistance level, this will also coincide with the breaching of the descending trendline from the high of 0.7171 made on September 3. Next, the bulls would keep the high of September 23 at 0.7094 on the radar.

NZD/USD additional levels