NZD/USD Price Analysis: Bullish sentiment maintains despite softening momentum

• Despite softening positive momentum indicated by the daily MACD, the overall trend still favors the buyers.
• Hourly chart shows fairly neutral RSI but negative momentum in MACD, signaling possible short-term fluctuations.
• Regardless of potential shifts suggested by hourly indicators, the overall bullish bias based on daily SMAs is intact.
• Signs of weakening buying momentum in NZD/USD implies potential retests of key SMAs, dictating investor alertness.

On Wednesday's session, the NZD/USD showed diminishing buying traction and fell just below 0.6100. However, the short-term outlook will be positive if the pair maintains its position over new reference points set by 100 and 200-day Simple Moving Averages (SMAs). If lost, the bears might step in aggressively.

Examining the daily chart, the Relative Strength Index (RSI) exhibits a positive but flattening trend, with its most recent reading of 60. Simultaneously, the Moving Average Convergence Divergence (MACD) displays decreasing green bars indicating a slight softening of positive momentum.

NZD/USD daily chart

Focusing on the hourly view, the RSI has moderately adjusted with the latest reading of 41, reflecting a fairly neutral direction. Notably, the MACD histogram has produced consistently flat red bars, signaling negative momentum on an intraday basis.

NZD/USD hourly chart

In conclusion, investors seem to be taking profits and, should the pair hold above the recently-conquered 100 and 200-day Simple Moving Averages (SMAs), any downward movement should not necessarily be considered a selling signal. However, buying traction appears to be waning, and the pair is set for a retest of the mentioned SMAs.