The New Zealand Dollar (NZD) versus the US Dollar (USD) pair experienced a three-day losing streak, closing the week on a negative note with the pair stabilizing at 0.6115. The outlook for NZD/USD continues to lean towards a bearish direction as bulls struggle to maintain upward momentum. In order to shift this trend, it is crucial for the pair to break above the 20-day Simple Moving Average (SMA) positioned at 0.6150.
On Friday, the NZD/USD pair made an effort to rally, reaching a high of 0.6140. However, the bulls were unable to sustain this positive movement, leading to the pair settling at 0.6115. This unsuccessful attempt to hold onto gains reinforces the growing bearish sentiment surrounding the Kiwi currency. To potentially reverse this negative outlook, the pair must surpass the 20-day SMA at 0.6150.
The Relative Strength Index (RSI) on the daily chart for NZD/USD is currently at 49, indicating a shift towards bearish momentum. Despite this shift, the RSI remains close to the neutral zone. Additionally, the Moving Average Convergence Divergence (MACD) is showing an increase in red bars, signaling a stronger presence of sellers in the market.
In terms of support levels, the NZD/USD pair has immediate support around the 0.6100 mark. Further support can be found at the 100-day SMA at 0.6070 and the 200-day SMA at 0.6060. These levels may serve as strong barriers if the pair continues its downward trend. A breach below these SMA convergence points could indicate a more intense sell-off scenario.
On the other hand, the primary resistance lies near the 20-day SMA level at 0.6150. Higher resistance levels are situated at 0.6170 and 0.6200. A decisive breakthrough above these levels could potentially signal a shift in market sentiment from bearish to bullish.
It is important to note that the information provided contains forward-looking statements and involves risks and uncertainties. Any decisions regarding investments should be thoroughly researched, as the content is for informational purposes only. FXStreet does not guarantee the accuracy or timeliness of the information presented. The views expressed in the article are those of the author and do not necessarily reflect the views of FXStreet. The author has no position in any stocks mentioned and has not received compensation for writing the article. It is recommended to consult with a registered investment advisor before making any investment decisions.