|

NZD/USD Price Forecast: Falls toward 0.5700 as medium-term price momentum weakens

  • NZD/USD could test the psychological support at the 0.5700 level
  • The daily chart indicates a prevailing bullish bias, though the 14-day RSI dropping below 50 suggests a possible bearish shift.
  • A rebound above the 50-day EMA could revive medium-term momentum, paving the way for testing the nine-day EMA at 0.5744.

NZD/USD continues its losing streak that began on March 18, trading around 0.5710 during European hours on Tuesday. The daily chart's technical analysis reflects a prevailing bullish bias, with the pair remaining within an ascending channel pattern. However, the 14-day Relative Strength Index (RSI) dipping below 50 signals a potential bearish shift.

Additionally, NZD/USD's decline below the nine- and 50-day Exponential Moving Averages (EMAs) suggests short- to medium-term weakness, indicating a transient loss of momentum. Despite this, the nine-day EMA staying above the 50-day EMA reinforces the broader bullish trend, pointing to an ongoing recovery.

The clear break below the 50-day EMA has dampened medium-term momentum, increasing downward pressure on the NZD/USD pair to test the psychological support at the 0.5700 level, followed by the lower boundary of the ascending channel around the 0.5660 level. A breakdown below this channel could strengthen the bearish bias, potentially driving the pair toward the monthly low of 0.5593, recorded on March 3.

On the upside, a rebound above the 50-day EMA at 0.5716 could restore medium-term momentum, allowing the NZD/USD pair to test the nine-day EMA at 0.5744. A breakout above this level may strengthen short-term momentum, pushing the pair toward the three-month high of 0.5832, reached on March 18. Further resistance lies near the upper boundary of the ascending channel at approximately 0.5880.

NZD/USD: Daily Chart

New Zealand Dollar PRICE Today

The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the weakest against the Japanese Yen.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.02%0.04%-0.08%0.04%-0.08%0.18%0.09%
EUR-0.02% 0.00%-0.11%0.00%-0.09%0.15%0.05%
GBP-0.04%-0.00% -0.14%0.01%-0.08%0.15%0.01%
JPY0.08%0.11%0.14% 0.11%0.04%0.26%0.15%
CAD-0.04%-0.01%-0.01%-0.11% -0.08%0.14%0.00%
AUD0.08%0.09%0.08%-0.04%0.08% 0.24%0.13%
NZD-0.18%-0.15%-0.15%-0.26%-0.14%-0.24% -0.14%
CHF-0.09%-0.05%-0.01%-0.15%-0.00%-0.13%0.14% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

More from Akhtar Faruqui
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations. 

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements. 

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.

Bitcoin risks deeper correction as ETF outflows mount, derivative traders stay on the sidelines

Bitcoin (BTC) remains under pressure, trading below $87,000 on Wednesday, nearing a key support level. A decisive daily close below this zone could open the door to a deeper correction.

Monetary policy: Three central banks, three decisions, the same caution

While the Fed eased its monetary policy on 10 December for the third consecutive FOMC meeting, without making any guarantees about future action, the BoE, the ECB and the BoJ are holding their respective meetings this week. 

AAVE slips below $186 as bearish signals outweigh the SEC investigation closure

Aave (AAVE) price continues its decline, trading below $186 at the time of writing on Wednesday after a rejection at the key resistance zone. Derivatives positioning and momentum indicators suggest that bearish forces still dominate in the near term.