NZD/USD Price Analysis: Bears push lower, 0.6000 support gone

  • NZD/USD retreats further, falling below 0.6000.
  • The oversold RSI points to a possible corrective bounce, but bearish momentum remains strong.
  • The pair is at its lowest since early August.

The NZD/USD currency pair has extended its downtrend, with bears maintaining firm control as selling momentum builds. During the session on Friday, the pair fell 0.60% to 0.5980, reaching lows not seen since August. Additionally, the 20-day SMA is about to complete a bearish crossover with the 100-day SMA, which could add selling pressure.

The Relative Strength Index (RSI) remains in oversold territory, currently at 30, indicating intense selling pressure. The downward trajectory of the RSI suggests that bearish momentum is likely to persist, coinciding with the rising red bars on the MACD histogram. That said, the RSI in oversold territory could trigger a corrective bounce as sellers could start to run out of steam.

NZD/USD daily chart

Technically, the NZD/USD pair continues to trade below its key moving averages, with the 100-day SMA at 0.6100 and the 200-day SMA around 0.6150 creating significant resistance. These obstacles are limiting the pair’s potential for an upward rebound.

Support levels: 0.5950, 0.5930, 0.5900.

Resistance levels: 0.6000, 0.6050, 0.6100.

Source: Fx Street

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