- NZD/USD slightly rebounds, hovering near the 0.5900 mark, but remains under a clear bearish influence.
- The pair lost more than 4% in July, underscoring a strong bearish outlook.
- The 0.5850 area is the last barrier against the sellers.
In Friday’s session, the NZD/USD took a slight break from its continual downward trajectory, mildly rebounding to 0.5890. This brief respite comes after a six-day losing streak that led to a significant bearish turnaround for the currency pair. The overall picture still reveals a strongly bearish influence, given the pair lost over 4% in July, and the bearish crossover of the 20-day Simple Moving Average (SMA) at 0.6050 with the 100-day SMA, which might just inspire the bears further.
The daily technical indicators continue to signal a bearish trend. The Relative Strength Index (RSI) stands at 24, nestled firmly within oversold territory, which indicates intense selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) with its flat red bars lends further support to a bearish outlook. As the RSI descends further into the oversold region, there may be a possible corrective momentum on the horizon.
NZD/USD daily chart
From a daily chart perspective, strong support is noticed at the 0.5880 level and slightly below that at May lows around 0.5850. On the flip side, resistance can now be spotted at the former support level of 0.6000, followed by 0.6050.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
