• The NZD/USD pair is rebounding slightly, oscillating around the 0.5900 level, but is still under clear bearish influence.
• The pair lost over 4% in July, underlining a strongly bearish outlook.
• The 0.5850 area is the last barrier for sellers.

NZD/USD took a brief break from its ongoing downtrend on Friday, rebounding mildly to 0.5890. This brief break comes after a six-day losing streak that led to a significant bearish turn for the currency pair. The overall picture continues to be strongly bearish, given that the pair has shed over 4% in July and a bearish crossover of the 20-day basic moving average (SMA) at 0.6050 with the 100-day SMA could inspire bears even more.

Daily technical indicators continue to signal a downtrend. The Relative Strength Index (RSI) is at 24, firmly in oversold territory, indicating intense selling pressure. Furthermore, the Moving Average Convergence Divergence (MACD) indicator with flat red bars further supports the bearish outlook. As the RSI continues to move into oversold territory, a possible corrective moment could be on the horizon.

NZD/USD Daily Chart

From a daily chart perspective, sturdy support can be seen at 0.5880 and just below that, with the May lows, around 0.5850. On the other hand, resistance can now be seen at the previous support level of 0.6000 and then at 0.6050.