NZD/USD Price Analysis: Pair eases but holds firm above 20-day SMA
- NZD/USD dips on Thursday, settling at 0.5675 after testing key support.
- Sellers attempted to push the pair below the 20-day SMA near 0.5640 but failed.
The NZD/USD pair softened on Thursday, edging 0.21% lower to 0.5675, but managed to hold above its 20-day Simple Moving Average (SMA). Bears attempted to break below the key support around 0.5640 but faced rejection, suggesting that buying interest remains resilient despite the slight pullback.
Technical indicators reflect a mixed outlook. The Relative Strength Index (RSI) declined sharply to 54, signaling a loss of momentum but still staying in positive territory. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, indicating a temporary pause in bullish momentum rather than a confirmed shift toward sellers.
Looking ahead, as long as NZD/USD holds above the 20-day SMA, currently near 0.5640, the broader bullish bias remains intact. A sustained break above 0.5700 could trigger further upside toward 0.5735, while a close below the SMA could expose the pair to a deeper retracement toward 0.5600.
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.
