NZD/USD Price Analysis: Pair retreats to 0.5685 and approaches key support
- NZD/USD declines on Monday, falling back toward recent support at 0.5685.
- Mixed technical signals highlight uncertainty, with momentum indicators losing clarity.
- Traders eye key levels, with market sentiment appearing to shift cautiously bearish.
The NZD/USD pair faced renewed selling pressure on Monday, declining by 0.45% to settle near 0.5685. This movement underscores the pair’s ongoing volatility, as sharp swings and alternating price levels characterize its recent performance. Despite earlier signs of bullish momentum, the pair now appears to be losing steam, keeping traders cautious about the near-term outlook.
Technical indicators present a mixed picture. The Relative Strength Index (RSI) has slid to 54, remaining in positive territory but showing a sharp decline, signaling a waning bullish bias. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, suggesting a lack of clear directional momentum. This divergence between indicators reflects growing uncertainty and raises the possibility of a shift in sentiment toward bearishness.
Key levels are likely to guide the pair’s trajectory in the short term. Immediate support is seen at 0.5670, with a break below this level potentially exposing 0.5630. On the upside, resistance remains at 0.5710, and a sustained move above this level would be required to reinvigorate the bullish case. The broader market sentiment and technical clarity will be critical in determining the pair’s next moves.
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.
