NZD/USD Price Analysis: Mild uptrend develops as bears take a breather
- Despite the predominantly bearish trend, NZD/USD exhibits signs of a mild rebound.
- Key resistance is noted at 0.5980, with a substantial support level observed around 0.5760.
- Daily RSI fluctuates under the 50-mark, indicating lasting bearish sentiment, but a recent recovery above 40 shows traces of bullish momentum.
The NZD/USD pair, while majorly sticking to its bearish course, has been showing signs of a mild uptrend over the end of the week and rose to 0.5960. The lows and highs are reaching slightly higher values, which, coupled with the formation of a slight handle-like pattern, indicates a probable bullish rally in the near future.
The daily Relative Strength Index (RSI) has largely been stationed below the mid-point although recent trading sessions have shown some recovery with the index breaching the 40-threshold mark. This incremental shift from the prevalent trend, while indicating ongoing bearish influence, provides a glimpse of potential bullish sentiment in future sessions.
The Moving Average Convergence Divergence (MACD) continues its stance below the signal line. However, the histogram's diminishing red bars could potentially reveal an impending bullish crossover.
NZD/USD daily chart
The pair has solidified its new support level around 0.5760, 0.5800, and 0.5850, now facing resistance at 0.5980, 0.6000 and 0.6030.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
