The NZD/USD pair hovered near the 0.5730 mark, showing slight losses as the Asian session approached. It’s facing significant pressure as it tests the crucial junction formed by the 20-day and 100-day moving averages. This area is proving to be a pivotal point, with potential downward risks looming if it dips below these averages.
During Friday’s session, before the Asian markets opened, the NZD/USD experienced a gentle decline, staying close to the 0.5730 level. Earlier, a wave of selling pressure affected the pair, bringing it to this critical intersection—a vital point for determining the short-term trends given the convergence of these moving averages.
The Relative Strength Index (RSI) has taken a noticeable dip but remains in positive territory, just above the neutral 50 level, indicating waning bullish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator, although still in the positive zone, shows a decline in upward momentum as evidenced by smaller green bars in its histogram.
From a technical standpoint, if the pair breaks cleanly below the support around 0.5730, where the 20-day and 100-day SMAs meet, it could lead to a more significant decline towards 0.5680 and potentially further down to 0.5620. Conversely, if buyers can defend this crucial support area, we might see the pair attempt to recover, aiming for resistance levels around 0.5780 and 0.5820.
