- The NZD/USD maintains a bearish stance while showing a flattening buying momentum on both daily and hourly charts.
- The bulls got rejected again by the 20-day SMA.
- Any upward movement that fails to conquer the mentioned SMA shouldn’t be considered a buying signal.
The NZD/USD pair rallied to 0.5980 on Monday and then stabilized around 0.5960, yet maintains a bearish outlook. While recent movements have shown increased buying momentum, significant positioning beneath key Simple Moving Averages (SMAs) indicates a larger bearish bias and as long as the pair is kept below this levels, the outlook will remain in favor of the bears.
On the daily chart, the Relative Strength Index (RSI) indicates a positive trend for the NZD/USD pair. From the oversold territory, the index is now on its way to its middle point, demonstrating an increase in buying momentum. The Moving Average Convergence Divergence (MACD) histogram displays flat green bars, suggesting steady positive momentum with buyers dominating the market but warns of a flattening buying traction.
NZD/USD daily chart
Transitioning to the hourly chart, the RSI maintains a positive outlook, hovering around the 57 mark but is currently pointing down, suggesting that the buyers are running out of steam in this timeframe. The MACD shows flat green bars, pointing to a more cautious uptrend.
NZD/USD hourly chart
While analyzing the broader scope, the pair currently sits in a bearish posture. The Kiwi's position below its 20, 100, and 200-day Simple Moving Average (SMA), indicates an overall downtrend. The 20-day SMA rejected the buyers at the 0.596 mark on Monday, which could discourage bullish traders. However, ahead of the Asian session, buyers might make an additional stride to recover that level which could brighten the outlook for the pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD trades around 0.6660 after another uneventful session
The AUD/USD pair remained away from investors’ radar and holds on to familiar levels in the 0.6660 region. Australian calendar has nothing to offer on Wednesday, but the RBNZ monetary policy decision may spur action.
EUR/USD lacks directional strength, hovers around 1.0850
The EUR/USD pair extended its consolidative phase for the second consecutive day as financial markets missed a clear catalyst. Attention flips to the FOMC Meeting Minutes scheduled for mid-Wednesday.
Gold steadies around $2,420 ahead of FOMC Minutes
Gold gained traction and climbed to $2,430 area in the American session, turning positive on the day. The pullback in the benchmark 10-year US Treasury bond yield helps XAU/USD stage a rebound following the sharp retreat seen from the all-time high set at the weekly opening at $2,450.
Ethereum could see new all-time high following Fidelity and Grayscale updates on ETF application
Ethereum (ETH) continued its rally on Tuesday following filings on the Securities & Exchange Commission's (SEC) website showing Fidelity and Grayscale filed an amended S-1 registration and initial 19b-4, respectively, for their spot ETH ETF products.
RBNZ expected to keep key interest rate on hold as inflation pressures persist
The Reserve Bank of New Zealand is widely anticipated to maintain the OCR at 5.50%. The language in the policy statement is expected to remain hawkish. The New Zealand Dollar has room to extend its bullish momentum.