• NZD/USD continues to retreat, falling below 0.6000.
• The oversold RSI indicates a possible corrective bounce, but bearish momentum remains sturdy.
• The pair is at its lowest levels since early August.

The NZD/USD currency pair has extended its downtrend, with bears maintaining a sturdy position as selling momentum picks up. During Friday’s session, the pair fell 0.60% to 0.5980, reaching lows not seen since August. Additionally, the 20-day elementary moving average (SMA) will soon complete a bearish crossover with the 100-day SMA, which could augment selling pressure.

The Relative Strength Index (RSI) remains in oversold territory, currently at 30, indicating sturdy selling pressure. The downward trajectory of the RSI suggests that bearish momentum is likely to continue, aligning with rising red bars on the moving average convergence divergence (MACD) histogram. That being said, the RSI in the oversold area could trigger a corrective bounce as sellers may start to run out of steam.

NZD/USD daily chart

Technically, the NZD/USD pair continues to trade below its key moving averages, with the 100-day elementary moving average (SMA) at 0.6100 and the 200-day SMA at 0.6150 creating significant resistance. These obstacles limit the pair’s potential to rebound higher.

Support levels: 0.5950, 0.5930, 0.5900.

Resistance levels: 0.6000, 0.6050, 0.6100.