NZD/USD Price Analysis: Treads water around 0.5900 with a bearish sentiment
|- NZD/USD maintains gains despite the bearish sentiment indicated by the technical analysis.
- Traders might contemplate short positions if the pair breaks below the support area encompassing 0.5863 and 0.5850.
- A pullback from the level of 0.5863 could lead the pair toward lower boundary of a symmetrical pattern around 0.5933.
NZD/USD snaps its two-day losing streak, trading around 0.5910 during the European session on Monday. The recent break below the symmetrical channel on April 15 on the daily chart denotes a bearish sentiment.
Furthermore, analysis of the lagging indicator Moving Average Convergence Divergence (MACD) suggests a prevailing downward trend for the NZD/USD pair. This is evident from the MACD line's placement below the centerline and the signal line.
Additionally, the 14-day Relative Strength Index (RSI) remains below the 50 level, offering further confirmation of the bearish sentiment. This could prompt traders of the NZD/USD pair to focus on the region around the significant support levels of 0.5863 and 0.5850. Should these levels be breached, traders may consider short positions, potentially driving the pair to test the psychological barrier at 0.5800, followed by the support level of 0.5772.
Alternatively, if the pair rebounds from the support level of 0.5863, it could target the lower boundary of a symmetrical pattern around 0.5933 and the key level of 0.5950. A breakthrough above these levels might encourage traders to adopt long positions, shifting the sentiment towards bullish, with a potential aim to reach the 50-day Exponential Moving Average (EMA) positioned at 0.6030.
A break above the 50-day EMA will strengthen the bullish sentiment and test the upper boundary of the symmetrical pattern around 0.6043. A breakthrough at this level could prompt the traders to go bullish and approach the resistance barrier at 0.6219.
NZD/USD: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.