- Kiwi tallies a three-day losing streak, end the week on a negative note with the pair stabilizing at 0.6115.
- NZD/USD outlook continues to skew bearish as bulls fail to maintain upward traction.
- Bucking the bearish trend, a break above 0.6150, the position of the 20-day SMA, is vital.
On Friday, the NZD/USD extended its losing streak to three days. Despite an attempt to rally which took the pair to a high of 0.6140, the bulls were unable to return to the positive side and the pair stabilized at 0.6115 The unsuccessful attempt to maintain gains solidifies the increasing bearish sentiment for the Kiwi. The currency pair must climb past the 20-day Simple Moving Average (SMA) situated at 0.6150 to brighten the otherwise negative outlook.
The Relative Strength Index (RSI) for the NZD/USD pair on the daily chart locates at 49, hinting at a shift of momentum towards more bearishness. Despite this downward shift, the RSI remains near the neutral zone. Furthermore, the Moving Average Convergence Divergence (MACD) continues to increase its red bars, indicating an amplified seller presence in the market.
NZD/USD daily chart
The NZD/USD finds immediate support near the 0.6100 level. Beneath that, additional support resides at the 100-day SMA at 0.6070 and the 200-day SMA at 0.6060. These levels could offer a robust defense should the pair extend its downside. A breach below these SMA convergence points might signal an intensifying sell-off scenario.
Conversely, the first resistance remains around the 20-day SMA level at 0.6150. Higher resistances are found at the 0.6170 and 0.6200 levels. A decisive breakout above these levels could possibly indicate an end to the current bearish market sentiment and start to favor the bulls.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD traders seem non-committed around 0.6500 amid mixed cues
AUD/USD extends its consolidative price move just above 0.6500 on Friday. The RBA's hawkish and upbeat market mood supports the Aussie, though mixed Australian PMI prints fail to inspire bulls. Moreover, bets for a slower Fed rate-cut path continue to fuel the post-US election USD rally and cap the currency pair.
USD/JPY slides to 154.00 as higher Japanese CPI fuels BoJ rate-hike bets
USD/JPY languishes near 154.00 following the release of a slightly higher-than-expected Japan CPI print, which keeps the door open for more rate hikes by the BoJ. That said, the risk-on mood, along with elevated US bond yields, could act as a headwind for the lower-yielding JPY and limit losses for the pair amid a bullish USD, bolstered by expectations for a less dovish Fed and concerns that Trump's policies could reignite inflation.
Gold price advances to near two-week top on geopolitical risks
Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.