NZD/USD Price Analysis: Kiwi steadies after a prolonged sell-off but downside risks persist
- NZD/USD edged higher, pausing its five-day losing streak, but gains remain limited.
- After losing the 20-day SMA and reaching its lowest level since mid-February, the pair stabilized as selling pressure eased.
- Resistance is seen at 0.5680, while support lies near 0.5580; indicators suggest a fragile recovery.
NZD/USD posted a mild gain on Monday after a prolonged losing streak, as the pair found some stability following its recent sell-off. Despite the brief upside move, the broader trend remains bearish, with the pair trading well below the 20-day Simple Moving Average (SMA). The downtrend has been reinforced by technical signals, suggesting that any bullish attempt might face strong resistance.
Momentum indicators highlight the fragility of the recovery. The Relative Strength Index (RSI) is turning higher but remains in negative territory, indicating that selling pressure is not yet fully exhausted. Meanwhile, the Moving Average Convergence Divergence (MACD) has crossed below its signal line, a bearish development that hints at continued downside risks.
From a technical perspective, the pair now faces immediate resistance at 0.5680, aligning with the 20-day SMA. A sustained move above this level could provide some breathing room for the bulls. On the downside, support emerges near 0.5580, a level that, if breached, could accelerate declines toward the 0.5540 region.
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.
