- The NZD/USD exhibits a bearish trend with growing selling pressure, accentuated by the stiff resistance at the 0.6040 level.
- Indicators are flattening on the daily chart as bulls are running out of steam.
The NZD/USD stands at 0.6005 seeing mild losses in Tuesday’s session. Market movements highlight strong bearish momentum following consecutive losing sessions. The overall trend reveals strengthening selling pressure, with the NZD/USD facing considerable resistance at the 0.6040-50 level. This suggests a potential continuation of the downward trend as sellers assert their market dominance and bulls struggle to gain further ground.
On the daily chart, the Relative Strength Index (RSI) for NZD/USD exhibits a recovery trend shifting from negative to positive territory. This trajectory indicates a gradual increase in buying interest but seems to have flattened. However, the Moving Average Convergence Divergence (MACD) histogram remains flat, reflecting stabilized momentum that does not favor either buyers or sellers dominantly.
NZD/USD daily chart
Shifting attention to the hourly chart, the NZD/USD pair presents a different narrative. The RSI flutters around in negative territory, showing sellers have a short-term advantage. Notably, the hourly MACD histogram presents flat red bars indicative of negative momentum persisting throughout the session.
NZD/USD hourly chart
In the grand scope, the mounting seller dominance is underscored by the NZD/USD's struggle to pierce the 200-day Simple Moving Average (SMA) at the 0.6040 level. This signifies a crucial resistance point for the pair. If the inability to break through persists, it could certainly reinforce the bearish trajectory in the next sessions. However, as long as the bulls hold above the 20-day SMA, the short-term outlook will remain tilted with some green.
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