NZD/USD Price Analysis: Bulls struggle with 20-day SMA resistance
- NZD/USD loses momentum, gets rejected by the 20-day SMA.
- Bulls struggle to claim control and get stuck in the 0.6070-0.6100 channel.
- Indicators paint a neutral to bearish picture on the daily chart.
In Monday's trading session, the NZD/USD showed weakened momentum, declining by 0.60% to 0.6080. Buyers found the 20-day Simple Moving Average (SMA) at around 0.6100, a strong resistance that quickly rejected the bullish force.
Daily technical indicators reflect a cautionary scenario for bullish traders. The Relative Strength Index (RSI) is currently at 46, a decrease from above 50 levels and now placing it in negative zone. This dip represents a decrease in buying pressure. On the contrary, the Moving Average Convergence Divergence (MACD) presents flat red bars, suggesting a somewhat stagnant bearish momentum.
NZD/USD daily chart
The bulls have got their work cut out as they face resistance at 0.6100 around the 20-day SMA, followed by the higher barriers at 0.6150 and 0.6200. A convincing close above these levels would be necessary to enforce bullish control and steer the focus northwards.
On the flip side, the 0.6070 mark acts as a staunch support, holding the line in the face of downward pressure, being closely trailed by further support lines at 0.6050 and 0.6030. A decisive plunge below these levels would indicate a shift back to a bearish perspective, potentially paving the way for a correction toward even lower levels.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
