NZD/USD Price Analysis: Bears press as the pair nears key support
- NZD/USD extends its losing streak to three consecutive sessions, testing critical support levels.
- RSI remains in positive territory but declines sharply, reflecting fading bullish strength.
- The pair approaches the 20-day SMA; a sustained break below could shift the outlook to the downside.
The NZD/USD pair continued its downward trajectory on Tuesday, marking its third consecutive daily decline as it moves closer to the 20-day Simple Moving Average (SMA). Despite last week's bullish push, buyers appear to be losing momentum, and the pair is approaching a key technical threshold that could determine its short-term direction.
From a technical standpoint, the Relative Strength Index (RSI) remains in positive territory but has declined sharply, indicating that bullish momentum is weakening. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram prints flat green bars, suggesting a pause in momentum as traders assess the next move.
Looking ahead, the 20-day SMA near the 0.5700 zone is the key level to watch. A decisive break below this support could confirm a shift in sentiment, potentially opening the door for deeper losses. Conversely, if buyers step in at this threshold, the pair could attempt a rebound, with immediate resistance seen around 0.5770.
NZD/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
