- NZD/USD drops 0.84% on Friday, trading at 0.6170.
- The RSI and MACD indicators support the bearish outlook, indicating continued negative momentum.
- The 20-day SMA acts as a strong resistance for sellers.
The NZD/USD pair has been trading within a narrow range, but Friday's sharp decline has shifted the short-term technical outlook to bearish, with the pair losing over 0.80% by the week's end.
The Relative Strength Index (RSI) has turned sharply downward, signaling a momentum shift in favor of the bears. Currently at 52, the RSI remains in neutral territory, but the steep drop suggests a potential break below the 50 level, which would confirm a bearish trend. Additionally, the Moving Average Convergence Divergence (MACD) has printed a new red bar, further indicating negative momentum and the likelihood of continued declines for the pair.
NZD/USD daily chart
The 20-day SMA at 0.6160 provides strong support against the selling pressure but a break below this level would open the door for further declines toward 0.610-0.6150. However, if the pair manages to hold the line, the 0.6200 could be retested.
