NZD/USD Price Analysis: Bears reign supreme, bulls nowhere to be found

The NZD/USD pair plunged to 0.5890 on Tuesday as bears hit the gas and bulls seem to have given up their momentum gained in the last session. Selling conditions are more extreme in the hourly charts as indicators signal oversold conditions which could lead to an upwards correction in the near tearm.

The daily Relative Strength Index (RSI) for the NZD/USD is in the negative territory. The most recent reading signals sellers are currently dominating the market, with a downward trend. Regarding the Moving Average Convergence Divergence (MACD), the decreasing green bars confirm this bearish momentum with the bullish impulse nowhere to be found.

NZD/USD daily chart

On the hourly chart, the RSI shows stronger oversold conditions in the most recent hours. However, the hourly MACD, indicated by flat red bars on the histogram, shows a flattening bearish momentum. Notably, despite the oversold condition, buyers have not yet stepped in with enough strength to shift the momentum toward the green zone but they might in the next hours.

NZD/USD hourly chart

Regarding the larger scope, the NZD/USD displays a bearish trend, evidenced by its position below the Simple Moving Averages (SMA) for the 20, 100, and 200-day periods. After getting rejected by the 20-day SMA multiple times in the last sessions, the outlook is confirmed to be bearish as the time of the buyers seems to be fading. In addition, after failing to conquer that crucial resistance, leaves the pair bound for additional downside. However, ahead of the Asian session, there could be a minor upward correction to consolidate the overextended downward movements seen on the hourly chart.