As the world’s top investment manager and financial market journalist, I bring you the latest update on the NZD/USD pair. The pair has been on a consistent bearish path since last week, with a significant drop of nearly 2% in the last four sessions. In Tuesday’s trading, the NZD/USD extended its downward momentum, breaching the critical 0.6000 mark and settling at 0.5960.
The failure of the bulls to push back against the sellers has led to a continuous decline below the key support level, indicating a strong bearish sentiment. The bearish crossover between the 20 and 100-day Simple Moving Averages at 0.6070 further supports the downward trend.
Technical indicators also point towards further downside potential, with the RSI approaching oversold levels and the MACD showing increasing red bars. However, a potential correction may be on the horizon as the RSI nears the oversold threshold.
Analysis and Breakdown
From a daily chart perspective, the NZD/USD pair faces strong support at 0.5950 and 0.5930-0.5900, with resistance levels at 0.6000 and 0.6050. The current bearish sentiment suggests that the pair may continue its downward trajectory in the near term.
For investors and traders, it is essential to monitor the key support and resistance levels mentioned above to make informed decisions. The bearish trend in the NZD/USD pair indicates potential opportunities for short-selling or hedging strategies. Stay tuned for further updates on this developing market situation.