NZD/USD Price Analysis: Reverses post-RBNZ losses near 0.6130, further recovery appears elusive

• NZD/USD picks up bids to pare intraday losses, stays mildly offers around two-year low.
• RSI conditions favor corrective pullback, short-term channel, falling wedge challenge buyers.
• The 0.6030-25 appears a tough nut to crack for bears.

NZD/USD struggles to defend the post-RBNZ losses, picking up bids to 0.6130 during early Wednesday morning in Europe. The Kiwi pair’s latest rebound could be linked to the nearly oversold RSI conditions.

However, the 10-DMA level surrounding 0.6170 could restrict the pair’s immediate upside, a break of which will highlight the monthly bearish channel’s resistance line, around 0.6190, as the consequent challenge for the NZD/USD bulls.

It’s worth noting that the quote’s run-up beyond 0.6190 needs validation from the multi-day-old falling wedge bullish chart pattern. Hence, a clear upside break of 0.6275 appears necessary to lure buyers.

Alternatively, the recent multi-month low around 0.6100 could test the NZD/USD before directing them to the convergence of downward sloping support lines from June 22 and January 27, around 0.6025.

 In a case where NZD/USD buyers keep reins past 0.6025, the 0.6000 psychological magnet and lows marked during May 2020, around 0.5920, will be crucial to watch.

Overall, NZD/USD rebound remains elusive until staying below 0.6275. Though, the pair’s downside has limited room to the south.

NZD/USD: Daily chart

Trend: Further recovery expected