NZD/USD Price Analysis: Pair rises slightly to 0.5780, selling pressure eases slightly

  • NZD/USD rises on Monday, settling around 0.5780 after recent declines.
  • The pair remains below the 20-day SMA, limiting the upside potential and keeping the bearish bias intact.
  • The RSI rises sharply to 39, while the MACD histogram shows decreasing red bars, suggesting a decrease in selling pressure.

The NZD/USD pair made a modest recovery on Monday, gaining 0.29% to trade near 0.5780. Although this rally indicates a slight reduction in selling pressure, the pair continues to trade below the 20-day SMA, currently near 0.5850, which remains a key hurdle to overcome.

Technical indicators reflect a tentative improvement but maintain a bearish inclination. The Relative Strength Index (RSI) has risen to 39, from near oversold territory, suggesting a fading downward momentum. Meanwhile, the MACD histogram features decreasing red bars, signaling that the bearish traction could be waning. Still, the pair’s inability to break above its 20-day SMA keeps the overall outlook negative.

Looking ahead, a decisive break above the 20-day SMA would be required to change sentiment and encourage buyers to participate with more confidence. On the downside, immediate support emerges around the 0.5750 region, followed by the 0.5700 mark if sellers regain control.

NZD/USD daily chart

Source: Fx Street

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