NZD/USD Price Analysis: Struggles near 0.5800, rebounds from a 11-month low
- NZD/USD pulls back from a 11-month low at 0.5773.
- The pair inclines toward the weaker sentiment suggested by the technical indicators.
- Nine-day EMA appears to be the barrier lined up with the 0.5850 psychological level.
NZD/USD dropped to a 11-month low at 0.5773 on Thursday. However, the pair has retraced the daily losses during the European session, struggling to halt a two-day losing streak.
The Moving Average Convergence Divergence (MACD) line persists below both the centerline and the signal line, setting a bearish tone for the NZD/USD pair, as echoed by market sentiment. Investors will likely watch the Kiwi’s Consumer Confidence on Friday, a key indicator for gauging sentiment and economic outlook.
The pair trades around the 0.5800 psychological level followed by the nine-day Exponential Moving Average (EMA) at 0.5849, which emerges as the key resistance lined up with the 0.5850 major level.
A firm break above the level could contribute support for the NZD/USD pair to explore the next psychological region around 0.5900 level following the 23.6% Fibonacci retracement at 0.5920.
On the downside, the region around the intraday low could act again as the immediate support followed by November’s low at 0.5740.
Furthermore, the NZD/USD duo reveals a subdued momentum, with the 14-day Relative Strength Index (RSI) showcasing a clear inclination towards weakness, dipping below the 50 level.
NZD/USD: Daily Chart
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
