NZD/USD Price Analysis: Pair gets rejected again by the 20-day SMA, more downside on the horizon
- The NZD/USD got rejected by the 20-day SMA by the fourth time this week.
- Technical indicators point to increasing selling pressure and decreasing buying pressure.
- A breakout from the 0.5940-0.6030 range will confirm a bearish outlook.
In Friday's session, the NZD/USD declined by 1.05% to 0.5960, continuing its downward trend as the pair got rejected by a third time this week by the 20-day Simple Moving Average (SMA).
The Relative Strength Index (RSI) is currently at 40 and in negative territory, indicating that selling pressure is rising. The RSI's slope is declining sharply, suggesting that selling pressure is increasing. The Moving Average Convergence Divergence (MACD) is also showing a mixed outlook, with the histogram being green but decreasing, indicating that buying pressure is declining.
The NZD/USD pair faced a third rejection from the 20-day Simple Moving Average (SMA), indicating strong selling pressure. This rejection has pushed the pair lower, suggesting that the downtrend is likely to continue. The multiple rejections of the 20-day SMA highlight the strength of the resistance level and the inability of buyers to break through it. As a result, traders can expect further downside momentum in the near term.
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.
