NZD/USD Price Analysis: Bulls back off, consolidation may be incoming

The hourly chart signals a possible short-term rise in selling pressure with a shar decline in the RSI.
The negative outlook remains on the daily chart.
The bearish crossover between the 20 and 200-day SMAs implies a strong negative momentum.

Patricio Martín FXStreet

The NZD/USD pair is trading at around 0.6025 and trimmed most of its daily gains on Thursday. After getting rejected by the 20-day Simple Moving Average (SMA) the latest upwards movements seem to have been short-lived and didn’t present a battle to the bearish overall trend.

On the daily chart, the Relative Strength Index (RSI) has shown slow movement from negative to positive territory over past sessions and now resides at around 47.15. However, the flat red bars of the Moving Average Convergence Divergence (MACD) indicate a steady negative momentum.

NZD/USD daily chart

On the hourly chart, the RSI proved more erratic, reaching a positive value of 70 earlier in the session and dropping to 50. This fluctuation suggests a possible short-term shift in momentum favoring the sellers. The MACD, continues to print red flat bars, indicating sustained negative momentum throughout recent hours.

NZD/USD hourly chart

Concerning its Simple Moving Averages (SMAs), the NZD/USD is below the 20,100 and 200-day SMAs. Thursday’s 20-day SMA rejection adds further arguments that the bullish momentum is weak. Moreover, the mentioned average completed a bearish crossover with the 200-day SMA which may eventually limit any upward momentum.

NZD/USD

Overview
Today last price	0.6025
Today Daily Change	0.0017
Today Daily Change %	0.28
Today daily open	0.6008

Trends
Daily SMA20	0.6059
Daily SMA50	0.6096
Daily SMA100	0.6137
Daily SMA200	0.607

Levels
Previous Daily High	0.6012
Previous Daily Low	0.5952
Previous Weekly High	0.6032
Previous Weekly Low	0.5956
Previous Monthly High	0.6218
Previous Monthly Low	0.5956
Daily Fibonacci 38.2%	0.5989
Daily Fibonacci 61.8%	0.5975
Daily Pivot Point S1	0.5969
Daily Pivot Point S2	0.5931
Daily Pivot Point S3	0.5909
Daily Pivot Point R1	0.6029
Daily Pivot Point R2	0.6051
Daily Pivot Point R3	0.6089

Author

Patricio Martín

FXStreet

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

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.