NZD/USD Price Analysis: Pair rises to 0.5860 but struggles at 20-day SMA
- NZD/USD rebounds by 0.53% on Monday, settling around 0.5860.
- Pair attempts to reclaim the 20-day SMA but faces rejection, keeping upside limited.
- RSI rises sharply but remains in negative territory, while MACD histogram shows weakening bullish momentum.
The NZD/USD pair posted a modest recovery on Monday, rising by 0.53% to 0.5860 after a sharp decline last week. However, the pair once again failed to breach the 20-day Simple Moving Average (SMA), currently near 0.5890, reinforcing its role as a key resistance level.
Technical indicators provide mixed signals but lean bearish. The Relative Strength Index (RSI) has risen sharply to 47, signaling improving momentum, though it remains in negative territory, reflecting ongoing selling pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram shows shrinking green bars, indicating waning bullish momentum despite the pair's daily gains.
While the pair holds above the 0.5830 support level, a sustained break above the 20-day SMA is needed to confirm a shift in momentum in favor of the bulls. On the downside, failure to maintain current levels could see the pair revisiting the 0.5830 support and potentially targeting the 0.5800 psychological level if selling pressure resumes.
NZD/USD daily chart
