NZD/USD Price Analysis: Pair falls to 0.5800 after strong rejection at 20-day SMA
- NZD/USD declines on Tuesday, retreating to 0.5800 after failing to reclaim the 20-day SMA.
- Pair faces strong rejection at the 20-day SMA, falling to fresh lows not seen since November 2023.
- RSI declines sharply in negative territory, while MACD histogram shows weakening bullish momentum with decreasing green bars.
The NZD/USD pair faced renewed selling pressure on Tuesday, dropping by 1.14% to 0.5800 after a failed attempt to reclaim the 20-day Simple Moving Average (SMA). The rejection at this key resistance level highlights the pair's inability to reverse its bearish trend, pushing it to fresh lows not seen since November 2023.
Technical indicators reinforce the bearish sentiment. The Relative Strength Index (RSI) has declined sharply to 39, remaining in negative territory and signaling intensifying selling pressure. Similarly, the Moving Average Convergence Divergence (MACD) histogram prints decreasing green bars, suggesting weakening bullish momentum and a lack of recovery signals.
With the pair now trading near the critical 0.5800 psychological support level, the downside risks remain elevated. A break below this level could pave the way for further declines, potentially targeting the 0.5770-0.5750 range. On the upside, the 20-day SMA at 0.5890 remains the key barrier, with a decisive break above it needed to shift the outlook back to neutral or bullish.
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.
