NZD/USD Price Analysis: Bears take the reins, technical outlook signals further losses
- The NZD/USD declined by 0.60% to 0.6125, extending its recent downtrend.
- The RSI is in negative territory and declining, while the MACD histogram is red and rising.
- A break below 0.6100 could open the door for a further decline towards 0.6000.
In Monday's session, the NZD/USD pair extended its recent decline, falling by 0.60% to 0.6125. The pair has been in a downtrend lately, and today's losses extend that trend. The technical indicators are also bearish, suggesting that the selling pressure is likely to continue.
The Relative Strength Index (RSI) is currently at 40, which is in negative territory and declining sharply. This suggests that selling pressure is increasing and that the bears are in control of the market. The Moving Average Convergence Divergence (MACD) histogram is also red and rising, indicating a bearish outlook. As long as the RSI remains below 50 and the MACD histogram remains red, the technical outlook will remain bearish for the NZD/USD.
NZD/USD daily chart
The overall outlook for the NZD/USD is bearish as the pair lost its 20-day Simple Moving Average (SMA). On the bright side, the sellers encountered a barrier at the 100-day SMA at 0.6120 which can mitigate the losses in the near term. That being said, a break below this level could open the door for a further decline towards 0.6000.