The NZD/USD pair has displayed a steep fall after failing to extend upside above the critical resistance of 0.6220 in the London session. The Kiwi asset has sharply dropped below the round-level support of 0.6200 as investors have turned cautious ahead of the interest rate decision by the Reserve Bank of New Zealand (RBNZ). S&P500 futures have surrendered their entire gains added in Asia, portraying a decline in the risk appetite of the market participants. The US Dollar Index (DXY) has found an intermediate support around 101.68.

The USD Index will dance to the tunes of Wednesday’s Consumer Price Index (CPI) data, which will be printed at 12:30 GMT. Inflationary pressures are expected to decelerate as gasoline prices have dropped. NZD/USD has corrected to near the upward-sloping trendline of the Ascending Triangle chart pattern, which is plotted from July 06 low at 0.6132 while the horizontal resistance of the aforementioned chart pattern is placed from July 06 high at 0.6220. The Kiwi asset is giving a tough fight to the 100-period Exponential Moving Average (EMA) at 0.6188.

Meanwhile, the Relative Strength Index (RSI) (14) is looking for support near 40.00. A slippage below the same could trigger bearish momentum. A downside move below July 10 low at 0.6160 will expose the asset to June 29 low at 0.6116. A slippage below the latter would drag the asset to June 05 low at 0.6041. Alternatively, a decisive break above June 22 high around 0.6220 will drive the asset towards June 14 high at 0.6236 followed by May 17 high at 0.6274.