NZD/USD Price Analysis: Bears maintain control, upwards correction signals emerge

The daily RSI reveals a negative trend for NZD/USD, suggesting prevalent selling pressure.
As the RSI stands near oversold conditions, the daily chart hints at a potential consolidation in the next sessions.
Indicators on the hourly chart corroborate the selling bias, while subtly highlighting signs of imminent recovery.

Patricio Martín FXStreet

The NZD/USD pair is currently trading at around 0.5903, suggesting a stronghold of the sellers in the market. The pair's tendency to trade below the short-term Simple Moving Averages (SMAs) indicates a short-term bearish outlook. However, with the oversold conditions looming, a possible reversal may not be too far off.

On the daily chart, the Relative Strength Index (RSI) readings have remained under a negative trend with the RSI sitting at 35, indicating a nearing oversold condition. This suggests that sellers have dominated the market in recent sessions. The negative momentum is also represented by the fresh red bar of the Moving Average Convergence Divergence (MACD), suggesting a current bearish bias. However, the nearing oversold condition signals the possibility of a trend reversal.

NZD/USD daily chart

Comparing this to the hourly chart, it is observed that the RSI values are still in the negative range and dangerously near the oversold threshold. The MACD histogram presents a flat red bar, indicating negative momentum, and essentially reaffirms the conclusion drawn from the daily charts, that the market has a prevalent selling bias, but there are signs of potential recovery.

NZD/USD hourly chart

Inspecting the broader outlook, the NZD/USD shows a negative outlook as it sits below its 20,100 and 200-day Simple Moving Average (SMA).

In conclusion, both the daily and the hourly technical outlooks suggest a bearish bias for the NZD/USD pair. However, traders should remain cautious of potential reversals given the nearing oversold condition based on the RSI readings.

NZD/USD

Overview
Today last price	0.5905
Today Daily Change	-0.0075
Today Daily Change %	-1.25
Today daily open	0.598

Trends
Daily SMA20	0.6011
Daily SMA50	0.6082
Daily SMA100	0.6136
Daily SMA200	0.6065

Levels
Previous Daily High	0.6011
Previous Daily Low	0.5933
Previous Weekly High	0.6079
Previous Weekly Low	0.5933
Previous Monthly High	0.6218
Previous Monthly Low	0.5956
Daily Fibonacci 38.2%	0.5963
Daily Fibonacci 61.8%	0.5981
Daily Pivot Point S1	0.5938
Daily Pivot Point S2	0.5897
Daily Pivot Point S3	0.586
Daily Pivot Point R1	0.6016
Daily Pivot Point R2	0.6053
Daily Pivot Point R3	0.6094

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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