NZD/USD Price Analysis: Kiwi trades near key SMAs as upside momentum stalls
- NZD/USD was seen hovering around the 0.5725 zone with mild losses ahead of the Asian session.
- The pair remains trapped near the convergence of the 20- and 100-day SMAs, limiting directional momentum.
- Support rests at the 0.5700 threshold, while the RSI hovers near the middlepoint, pointing to a lack of strong conviction.
The NZD/USD pair was seen trading near the 0.5725 area on Monday, showing mild downside pressure ahead of the Asian session. After a short-lived attempt to gather bullish traction, the kiwi remains capped by the convergence of two key daily moving averages, which continue to act as a magnet for price action. Indicators now show signs of weakening momentum, hinting at limited follow-through in either direction for now.
On the technical front, the Relative Strength Index (RSI) sits right around the 50 mark and is mildly declining, reflecting a neutral momentum profile and lack of strong directional bias. Meanwhile, the Moving Average Convergence Divergence (MACD) is printing decreasing green bars, suggesting that bullish momentum is gradually fading. These developments reinforce the idea that the pair might remain rangebound unless a breakout occurs.
The 20-day and 100-day Simple Moving Averages, clustered around 0.5730, have become pivotal levels. A decisive break below this area could expose the next support near 0.5700, opening the door for further downside in the near term. Conversely, holding above these SMAs could allow buyers to retest the 0.5780 region and potentially eye the 0.5830 zone beyond.
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.
