NZD/USD Price Analysis: Persistent bearish forces, oversold RSI hints at a possible rebound
- NZD/USD plunges, technical outlook remains bearish.
- RSI nears oversold zone, hinting at potential correction.
- MACD suggests persistent bearish momentum.
In Monday's session, the NZD/USD pair extended its downward trajectory, depreciating by a significant 0.70% to settle at 0.6030. The technical indicators maintain a bearish stance, signaling a possible continuation of the selling pressure that has characterized recent trading.
The Relative Strength Index (RSI) remains near the oversold area, with a reading of 35 and a descending slope. This indicates a rise in selling pressure, suggesting that the bears continue to exert their influence. However, the proximity to the oversold zone raises the possibility of a corrective bounce if the selling momentum wanes. The Moving Average Convergence Divergence (MACD) histogram, displaying rising red bars, confirms the bearish trend. The histogram's upward movement indicates increasing bearish momentum, while the red color denotes a negative trend.
NZD/USD daily chart
The NZD/USD pair faces significant technical challenges, indicating a bearish outlook. The pair has been trading below key support levels, including the critical 100 and 200-day Simple Moving Averages (SMAs), which currently reside around 0.6100. The pair now stands in lows since mid-August and it may be set for further downside if buyers don’t step in.
If selling continues, the next support is around 0.6000. Conversely, a recovery might see immediate resistance emerging around 0.6060,0.6080 and 0.6100.