NZD/USD Price Analysis: Bulls struggle to hold key support as sellers resurface
- NZD/USD edges lower to 0.5650 on Wednesday, reversing Tuesday’s attempt to reclaim the 20-day SMA.
- Technical indicators signal waning momentum, with RSI declining and MACD showing neutral conditions.
- A decisive break below 0.5650 could reinforce bearish pressure, while buyers must defend this level to avoid deeper losses.
The NZD/USD pair saw mild losses on Wednesday, retreating to 0.5650 as selling pressure returned after Tuesday’s attempt to regain higher ground. The pair remains locked in a battle against its 20-day Simple Moving Average (SMA), a critical threshold that could determine the near-term outlook. A failure to hold above this level may open the door to further downside movement.
Technical indicators paint a cautious picture. The Relative Strength Index (RSI) is declining at 49, signaling growing selling interest, while the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, suggesting a lack of strong directional momentum. This combination indicates a market in consolidation, with neither bulls nor bears taking full control.
From a structural standpoint, 0.5650 serves as a pivotal level. A clear break below this threshold could pave the way toward 0.5600, while sustained buying above the 20-day SMA would be required for any meaningful bullish reversal, with initial resistance seen at 0.5685 and 0.5700.
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.
