- NZD/USD falls on Friday, settling around 0.5760 after trimming earlier gains near 0.5850.
- The pair remains capped by the 20-day SMA, with attempts to rally thwarted by continued selling pressure.
- The RSI is hovering near the oversold area at 34, while the MACD histogram shows rising red bars, indicating bearish momentum is intensifying.
The NZD/USD pair struggled on Friday, falling 0.14% to 0.5760 and failing to sustain gains that briefly lifted it towards the 0.5850 area. Continued selling pressure and the inability to break above the 20-day basic moving average (SMA), currently near 0.5890, continue to negatively impact the pair’s near-term prospects.
Technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) is at 34, approaching oversold conditions while still pointing lower and reflecting continued weakness. Meanwhile, the moving average divergence (MACD) histogram now displays rising red bars, signaling that bearish momentum is intensifying despite the pair’s recent attempts to revive the pair.
With NZD/USD drifting lower, immediate support is around 0.5750 and then, if selling continues, a psychological break at 0.5700 will occur. On the other hand, a decisive break above the 20-day SMA would be necessary to negate the current bear bias and give the bulls a chance to regain control.
