- The NZD/USD pair fell at the end of the weekend around 0.5590 after struggling to maintain previous gains.
- The RSI fell to 40 in negative territory, indicating weak momentum as sellers regain confidence.
- The MACD histogram shows rising green bars, indicating that bullish interest has not faded despite the decline.
The NZD/USD pair lost ground on Friday, falling 0.30% to settle near 0.5590. This pullback casts doubt on the sustainability of the pair’s recent consolidation above the 20-day simple moving average (SMA), an area that may still offer a line of defense for buyers hoping to maintain bullish momentum. As sellers begin to unwind the gains seen earlier in the week, it remains uncertain whether the pair can hold on to the fragile support area.
From a technical perspective, momentum readings are mixed. The Relative Strength Index (RSI) fell sharply to 40, confirming a renewed bout of downward pressure. Meanwhile, the Moving Average Convergence-Divergence (MACD) histogram continues to produce green bars, indicating that some underlying bullish sentiment remains but in a less confident manner. These conflicting signals underscore the precise nature of the current price action.
Should the NZD/USD pair effectively consolidate near the 20-day SMA, which is now near the 0.5600 mark, buyers may attempt another push higher, with the 0.5630 area acting as a temporary hurdle before a potential rally. At 0.5650. Conversely, a decisive break below 0.5580 would likely hand control back to the bears, exposing lower targets near the 0.5550 area and undermining the pair’s emerging support base.
NZD/USD daily chart
