NZD/USD Price Analysis: Pair resumed downfall, nearing oversold levels

NZD/USD fell 0.68% to 0.5925 on Tuesday.
Pair resumed its downfall, hitting the lowest low since August 5.
The near-oversold levels of the RSi might trigger an upwards correction.

Patricio Martín FXStreet

The NZD/USD pair extended its decline on Tuesday, falling by 0.68% to 0.5925, hitting the lowest level since August 5. The downtrend has resumed, with technical indicators pointing to further weakness.

The Relative Strength Index (RSI) is approaching oversold territory near 30, suggesting that selling pressure is rising. Meanwhile, the Moving Average Convergence Divergence (MACD) indicates that buying pressure is declining, giving more evidence of a bullish weakness. The recent technical analysis of the NZD/USD pair suggests that the downtrend could continue, but mixed signals are present, indicating a potential for a recovery due to the oversold nature of the RSI.

Support levels around 0.5950, 0.5900, and 0.5850, and resistance levels at 0.6000, 0.6050, and 0.6100.

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.

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