NZD/USD Price Analysis: Kiwi defends key support but face resistance
- NZD/USD stands around 0.5710 area ahead of the Asian session, extending its mild recovery.
- Buyers successfully defended the 20-day SMA, but sellers remain active, capping upside momentum.
- Technical outlook shows resistance near 0.5750, while support is firm at 0.5660 and the 20-day SMA.
The NZD/USD pair edged higher on Tuesday ahead of the Asian session, moving near the 0.5710 zone after rebounding from recent lows. The uptick of 0.26% reflects some buying interest, yet the broader technical setup suggests that bears are still lurking around, limiting further gains.
From a technical perspective, the Relative Strength Index (RSI) is rising sharply within positive territory, indicating strengthening bullish momentum. However, the Moving Average Convergence Divergence (MACD) remains in negative territory, with flat red bars signaling a lack of strong directional bias. This suggests that while buyers managed to defend key support at the 20-day Simple Moving Average (SMA), further upside could face resistance unless momentum builds.
Looking at support and resistance levels, the first resistance appears around the 0.5750 region, followed by stronger resistance at 0.5780. If bulls manage to push the pair above these levels, a retest of the 100-day SMA could be on the table. On the downside, initial support stands at 0.5690, with stronger demand seen around the 20-day SMA, which remains a critical level for maintaining a positive outlook.
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.
