NZD/USD Price Analysis: Bears push lower, 0.6000 support gone
- NZD/USD retreats further, dropping below 0.6000.
- Oversold RSI points to possible corrective bounce, but bearish momentum remains strong.
- The pair stands in lows since early August.
The NZD/USD currency pair has extended its downtrend, with bears maintaining a firm grip as selling momentum builds. During Friday's session, the pair fell by 0.60% to 0.5980, hitting lows not witnessed since August. In addition, the 20-day Simple Moving Average (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 RSI's downwards trajectory suggests that bearish momentum is likely to persist, matching the rising red bars on the Moving Average Convergence Divergence (MACD) histogram. That being said, the RSI in oversold terrain might trigger a corrective bounce as sellers might 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 Simple Moving Average (SMA) at 0.6100 and the 200-day SMA around 0.6150 creating significant resistance. These hurdles are capping the pair's potential for an upward rebound.
Support levels: 0.5950, 0.5930, 0.5900.
Resistance levels: 0.6000,0.6050, 0.6100.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
