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- The New Zealand dollar recorded a three-day losing streak, ending the week on a negative note with the pair settling at 0.6115.
- NZD/USD forecast continues to skew bearish as bulls fail to maintain bullish momentum.
- By bucking the downtrend, a break above the 0.6150 level, the location of the 20-day simple moving average, is vital.
On Friday, the NZD/USD pair extended its losing streak to three days. Despite the rally attempt that took the pair to a high of 0.6140, the bulls were unable to return to the positive side and the pair settled at 0.6115. The failed attempt to sustain the gains reinforced the increasingly bearish sentiment for the New Zealand dollar. The currency pair must cross the 20-day simple moving average (SMA) located at 0.6150 to brighten the negative outlook.
Relative Strength Index (RSI). NZD/USD pair Daily Schedule It is located at 49, indicating a shift in momentum towards more downside. Despite this downward shift, the RSI remains near the neutral zone. Moreover, the Moving Average Convergence Divergence (MACD) indicator continues to increase its red bars, indicating the presence of an oversold seller in the market.
NZD/USD daily chart
NZD/USD finds immediate support near the 0.6100 level. Below that, additional support is seen at the 100-day simple moving average at 0.6070 and the 200-day simple moving average at 0.6060. These levels can provide a strong defense if the pair continues its downtrend. A break below the SMA convergence points may indicate a sell-off scenario.
On the contrary, the first resistance remains around the 20-day simple moving average level at 0.6150. There is higher resistance at the 0.6170 and 0.6200 levels. A decisive break above these levels may signal the end of the current downtrend Market sentiment And start favoring bulls.
