The NZD/USD pair experienced a significant drop of 0.84% on Friday, closing the week at 0.6170. This sharp decline has shifted the technical outlook to bearish, signaling negative momentum in the short-term.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators both align with the bearish outlook, indicating a strong possibility of further downward movement. The RSI, currently at 52 in neutral territory, is likely to break below the 50 level, confirming the bearish trend. The MACD also shows a fresh red bar, supporting the view of negative momentum and potential continued decline.
NZD/USD Daily Chart Analysis
The 20-day Simple Moving Average (SMA) at 0.6160 is acting as a strong barrier against selling pressure. However, a break below this level could lead to further declines towards the 0.610-0.6150 range. On the other hand, if the pair holds above the 20-day SMA, a retest of the 0.6200 level is possible.
Overall, the NZD/USD pair is currently in a bearish trend, with technical indicators pointing towards further downside potential. Traders and investors should monitor the 20-day SMA level closely for potential breakout opportunities.