NZD/USD Price Analysis: Momentum slackens as buyers get rejected at the 200-day SMA
- The daily chart reveals a subtle change in buyers' momentum, noted by decreasing MACD green bars and a neutral RSI.
- Hourly indicators picture a balanced scenario for the session.
At the end of the week, the NZD/USD has lost 0.21% as buyers seem to have run out of steam. The sluggish trend momentum might suggest an emerging bearish grip, although the short-term positive outlook remains largely unbroken.
Despite the Relative Strength Index (RSI) sitting in the neutral zone and displaying a positive outlook, the overall trend appears to be flattening. The Moving Average Convergence Divergence (MACD) also echoes the slowing momentum, printing decreasing green bars.
NZD/USD daily chart
The hourly view shows a neutral bias with a mild lack of traction for either party reflected by the flat RSI and MACD.
NZD/USD hourly chart
A broader inspection highlights the NZD/USD residing beneath the crucial 100 and 200-day Simple Moving Averages (SMAs), lending credence to a bearish outlook. The alleged sellers' strength is verified at the 200-day SMA barrier, further solidifying the short-term bearish slant as it rejected the buyers in Friday’s session. However, if the bulls manage to hold the key short-term 20-day SMA, the downside in the next sessions will be limited.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
