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.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.