NZD/USD Price Analysis: Downward trend likely to continue despite indicators recovering
- The RSI on the daily chart lies deep in negative terrain but recovered.
- The hourly RSI paints a growing buying momentum, trending the positive territory.
- The MACD on both charts signals a less intense selling momentum.
The NZD/USD stands recovered to 0.5919, it seeing 0.60% gains. The dominant sentiment remains bearish, subtly dominated by sellers due to the consistent positioning beneath key Simple Moving Averages (SMAs). However, indicators on the daily and hourly charts seem to be recovering.
On the daily chart, the Relative Strength Index (RSI) demonstrates a negative sentiment as it continues an under-50 trend. Although there was a slight uptick from the recent low point seen on Monday, the RSI remains in deep in negative territory. Moreover, the Moving Average Convergence Divergence (MACD) displays falling red bars, reinforcing a weakening bearish momentum.
NZD/USD daily chart
The hourly chart presents an interesting contrast. Here, recent RSI readings consistently float above 50, marking a positive territory. The latest reading is 57, revealing that buyers are taking the reins on the hourly scale. The MACD histogram echoes the buying momentum printing rising green bars.
NZD/USD hourly chart
Upon examining the long-term trend, it becomes apparent that the NZD/USD exhibits bearish momentum as it slots below the 20-day, 100-day, and 200-day Simple Moving Average (SMA) indicators. So any movements which keeps the pair beneath these levels shouldn't be considered as a clear buying signal.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
