NZD/USD Price Analysis: Pair resumed downfall, nearing oversold levels

NZD/USD fell 0.68% to 0.5925 on Tuesday.
Pair resumed its downfall, hitting the lowest low since August 5.
The near-oversold levels of the RSi might trigger an upwards correction.

Patricio Martín FXStreet

The NZD/USD pair extended its decline on Tuesday, falling by 0.68% to 0.5925, hitting the lowest level since August 5. The downtrend has resumed, with technical indicators pointing to further weakness.

The Relative Strength Index (RSI) is approaching oversold territory near 30, suggesting that selling pressure is rising. Meanwhile, the Moving Average Convergence Divergence (MACD) indicates that buying pressure is declining, giving more evidence of a bullish weakness. The recent technical analysis of the NZD/USD pair suggests that the downtrend could continue, but mixed signals are present, indicating a potential for a recovery due to the oversold nature of the RSI.

Support levels around 0.5950, 0.5900, and 0.5850, and resistance levels at 0.6000, 0.6050, and 0.6100.

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 revisits 1.1780, or daily lows

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to reach daily troughs on Thursday. The pair’s decline comes in response to a sudden bout of USD strength amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD makes a U-turn, challenges 1.3500

GBP/USD rapidly leaves behind Wednesday’s strong advance, putting the 1.3500 support to the test on Thursday. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.