NZD/USD Price Analysis: Bears grow stronger, as the pair struggles under the 20-day SMA

Source Fxstreet
Jun 20, 2024 21:44
  • Despite NZD/USD's attempts to recover losses, another rejection at the 20-day SMA sees a retreat to 0.6122.
  • The short-term outlook is increasingly bearish, with rising selling traction visible.
  • For a break in the bearish outlook, the pair must recover the 20-day SMA at 0.6150.

On Thursday, the NZD/USD extended its losses below the 20-day Simple Moving Average (SMA), its fourth consecutive rejection at this strong support level this week. The pair retreated to 0.6122. Despite attempts to recover losses, indicators are signalling rising bearish traction potentially paving the way for further downside unless the pair can regain control over the 20-day SMA around the 0.6150 mark.

The Relative Strength Index (RSI) of the NZDUSD daily chart positions at 49, slightly below the neutral territory. Compared to Tuesday's reading of 51, the RSI indicators are pointing south, suggesting a potential decrease in the market momentum. Despite near-term downward dynamics, it remains distanced from the oversold conditions. The Moving Average Convergence Divergence (MACD) profile continues to print rising red bars indicating an elevated presence of sellers in the market.

NZD/USD daily chart

For the NZD/USD, immediate support remains near the 0.6100 level. Further support is available at the convergence of the 100-day and 200-day SMAs at 0.60695 and 0.60627 respectively. These levels could provide a solid foundation in the event of an extension of the downside move. A break below these SMA convergence points might be indicative of a strong sell-off scenario.

In stark contrast, resistance for the pair is entrenched around the 20-day SMA at 0.6150 level. Then higher up at 0.6170 and finally at the 0.6200 level. A decisive breakout above these levels could potentially signify the end of the current bearish market sentiment and a shift toward bullish dynamics.

NZD/USD

Overview
Today last price 0.6124
Today Daily Change -0.0009
Today Daily Change % -0.15
Today daily open 0.6133
 
Trends
Daily SMA20 0.6147
Daily SMA50 0.6053
Daily SMA100 0.607
Daily SMA200 0.6064
 
Levels
Previous Daily High 0.6146
Previous Daily Low 0.6127
Previous Weekly High 0.6222
Previous Weekly Low 0.6099
Previous Monthly High 0.6171
Previous Monthly Low 0.5875
Daily Fibonacci 38.2% 0.6134
Daily Fibonacci 61.8% 0.6139
Daily Pivot Point S1 0.6125
Daily Pivot Point S2 0.6116
Daily Pivot Point S3 0.6106
Daily Pivot Point R1 0.6144
Daily Pivot Point R2 0.6154
Daily Pivot Point R3 0.6163

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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