NZD/USD Price Analysis: Pair plunges to 0.5830 after rejection at 20-day SMA
- NZD/USD drops sharply on Friday, settling around 0.5830.
- Pair faces strong resistance at the 20-day SMA, which remains unbroken.
- Indicators show weakening buying traction, reinforcing the bearish outlook.
The NZD/USD pair extended its decline on Friday, plunging to 0.5830 after failing to break above the 20-day Simple Moving Average (SMA). This key technical level continues to act as a formidable resistance, preventing a bullish recovery and leaving the pair under significant selling pressure.
Technical indicators reflect the loss of bullish momentum. The Relative Strength Index (RSI) shows a falling trajectory, staying in negative territory, signaling weakening buying traction. Meanwhile, the Moving Average Convergence Divergence (MACD) displays a shrinking histogram with fading green bars, indicating a slowdown in bullish momentum and reinforcing the bearish sentiment.
For now, the outlook remains decidedly bearish, with the 20-day SMA serving as a critical barrier for any upside attempts. Should the selling pressure persist, the pair may target further declines towards the 0.5800 psychological level. On the upside, a decisive break above the 20-day SMA, currently near 0.5880, is necessary to shift momentum in favor of the bulls.
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.
