NZD/USD Price Analysis: Buyers struggle to build momentum as pair hovers around 20-day SMA
- NZD/USD edges up to 0.5650 on Thursday, but upside traction remains weak.
- The pair continues to trade sideways above the 20-day SMA, failing to establish a clear trend.
- While technical indicators show mixed signals, recent price action suggests the market is awaiting a catalyst for a decisive move.
The NZD/USD pair saw a mild increase on Thursday, rising to 0.5650 as buyers attempted to push the price higher. However, the move lacked conviction, with the pair struggling to gain traction above its 20-day Simple Moving Average (SMA). This level has acted as a critical pivot point in recent sessions, and a decisive break above it remains elusive.
Technical indicators paint a mixed picture. The Relative Strength Index (RSI) has climbed to 53, signaling some improvement in buying interest. However, the Moving Average Convergence Divergence (MACD) histogram prints flat green bars, suggesting that bullish momentum has yet to take hold. Notably, despite the recent attempt at gains, price volatility has decreased, which could indicate that traders are waiting for fresh macroeconomic data or a shift in market sentiment before making their next move.
If buyers manage to sustain a move above 0.5650, further gains could be on the horizon, with the next resistance zone around 0.5680-0.5700. On the downside, failure to hold above the 20-day SMA may lead to renewed selling pressure, exposing the pair to declines toward the 0.5620 and 0.5600 support areas.
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.
