The NZD/USD currency pair took a hit on Friday, dipping to around 0.5760 after briefly reaching towards 0.5850. Despite early gains, the pair faced resistance, unable to push past the 20-day Simple Moving Average (SMA), which hovers around 0.5890. This persistent selling pressure continues to dampen its short-term outlook.
Looking at the technical indicators, they all seem to be confirming a bearish trend. The Relative Strength Index (RSI) is sitting at 34, inching close to oversold territory and still pointing downward, highlighting a continuation of weakness. Additionally, the Moving Average Convergence Divergence (MACD) histogram is producing increasing red bars, a clear signal of growing bearish momentum despite recent recovery attempts.
As the NZD/USD edges lower, traders should watch the immediate support at approximately 0.5750, with another potential support level at the psychological 0.5700 mark if selling maintains its pace. Conversely, for the bulls to make a comeback, breaking decisively above the 20-day SMA is crucial to reversing the current bearish trend and restoring some control.
