NZD/USD Price Analysis: Pair plunges to 0.5830 after rejection at 20-day SMA

NZD/USD drops sharply on Friday, settling around 0.5830.
Pair faces strong resistance at the 20-day SMA, which remains unbroken.
Indicators show weakening buying traction, reinforcing the bearish outlook.

Patricio Martín FXStreet

The NZD/USD pair extended its decline on Friday, plunging to 0.5830 after failing to break above the 20-day Simple Moving Average (SMA). This key technical level continues to act as a formidable resistance, preventing a bullish recovery and leaving the pair under significant selling pressure.

Technical indicators reflect the loss of bullish momentum. The Relative Strength Index (RSI) shows a falling trajectory, staying in negative territory, signaling weakening buying traction. Meanwhile, the Moving Average Convergence Divergence (MACD) displays a shrinking histogram with fading green bars, indicating a slowdown in bullish momentum and reinforcing the bearish sentiment.

For now, the outlook remains decidedly bearish, with the 20-day SMA serving as a critical barrier for any upside attempts. Should the selling pressure persist, the pair may target further declines towards the 0.5800 psychological level. On the upside, a decisive break above the 20-day SMA, currently near 0.5880, is necessary to shift momentum in favor of the bulls.

NZD/USD daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold seen through the roof as US, Israel and Iran war enters day 3

Gold is set for a huge bullish opening gap in Asian trading on Monday, with a flight to safety rush likely to sponsor the upsurge after the US and Israel struck Iran with heavy bombings over the weekend. More geopolitical headlines surrounding the Middle East conflict and Oil price movement remain in focus.

Iran escalation: Quick thoughts on markets

Markets are likely to open the week with risk-off, with declines led by airlines, cyclicals and trade-exposed names, while energy, defense and “strategic” sectors may be relatively steadier.

Oil at a critical breakpoint: Will geopolitics trigger the next major move?

The week ahead blends two powerful forces: moderating economic momentum and increasing geopolitical tension. While US and Eurozone data suggest steady but unspectacular growth, rising friction between the US and Iran is injecting a fresh risk premium into energy markets. Macro is softening but geopolitics may dominate price action.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.