NZD/USD shows bearish momentum as downtrend continues
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Bearish Bias Reinforced by Descending Channel and Moving Averages
The NZD/USD pair remains under pressure, trading near 0.5950 during today’s European session and hovering around the lower region of a descending channel pattern. This technical formation highlights an ongoing bearish outlook, as the pair edges closer to the lower boundary of the channel around 0.5930. A decisive break below this level could trigger further downward momentum, pushing NZD/USD towards additional support near 0.5850.
Adding to this outlook, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, reinforcing the bearish sentiment for the New Zealand Dollar. Momentum indicators align with this downtrend, as the 14-day Relative Strength Index (RSI) hovers just above 30. If the RSI dips below this mark, it could signal an oversold condition, potentially setting the stage for a temporary upward correction.
Resistance Levels and Potential Bullish Reversal
On the upside, the NZD/USD faces its first resistance at the upper boundary of the descending channel, around the nine-day EMA at 0.6006. A sustained move above this could encourage short-term bullishness, with the pair eyeing the next resistance at the 14-day EMA near 0.6033. A break above these EMAs would mark a significant shift, potentially opening the path to the psychological level of 0.6100.
Key Levels to Watch
Support: 0.5930 (descending channel lower boundary), 0.5850 (pullback support) Resistance: 0.6006 (nine-day EMA), 0.6033 (14-day EMA), 0.6100 (psychological level) For now, the NZD/USD remains tilted towards the downside as technical indicators continue to favor sellers, with bearish momentum likely to persist unless key resistance levels are breached.
The NZD/USD pair remains under pressure, trading near 0.5950 during today’s European session and hovering around the lower region of a descending channel pattern. This technical formation highlights an ongoing bearish outlook, as the pair edges closer to the lower boundary of the channel around 0.5930. A decisive break below this level could trigger further downward momentum, pushing NZD/USD towards additional support near 0.5850.
Adding to this outlook, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, reinforcing the bearish sentiment for the New Zealand Dollar. Momentum indicators align with this downtrend, as the 14-day Relative Strength Index (RSI) hovers just above 30. If the RSI dips below this mark, it could signal an oversold condition, potentially setting the stage for a temporary upward correction.
Resistance Levels and Potential Bullish Reversal
On the upside, the NZD/USD faces its first resistance at the upper boundary of the descending channel, around the nine-day EMA at 0.6006. A sustained move above this could encourage short-term bullishness, with the pair eyeing the next resistance at the 14-day EMA near 0.6033. A break above these EMAs would mark a significant shift, potentially opening the path to the psychological level of 0.6100.
Key Levels to Watch
Support: 0.5930 (descending channel lower boundary), 0.5850 (pullback support) Resistance: 0.6006 (nine-day EMA), 0.6033 (14-day EMA), 0.6100 (psychological level) For now, the NZD/USD remains tilted towards the downside as technical indicators continue to favor sellers, with bearish momentum likely to persist unless key resistance levels are breached.