- The daily RSI shows a rise in selling traction, supported by the MACD depicting growing red bars.
- The hourly RSI indicates oversold conditions, signaling a potential pullback or bullish correction in the short term.
- Despite daily bearish tendencies, the pair still holds the 200-day SMA.
In Friday’s session, the NZD/USD pair experienced a notable decline to 0.6086, marking a significant downturn of 0.77%. Sellers appear to dominate the market sentiment, although buyers find some solace in maintaining position above the 200-day Simple Moving Average (SMA).
Analyzing the daily chart reveals the Relative Strength Index (RSI) dipping into negative territory subsequent to a brief recovery above 50 last week, signaling heightened selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) histogram depicts a succession of increasing red bars, indicating a strengthening bearish sentiment prevailing in the market.
NZD/USD daily chart
Transitioning to the hourly chart unveils a striking juxtaposition. RSI readings plunge into deep oversold regions, hinting that the recent selling pressure might have stretched too far. Such conditions frequently precede a potential price rebound or bullish correction in the immediate future. Meanwhile, examining the MACD histogram reveals green bars, signaling neutral momentum despite their flat trajectory. While this suggests no notable short-term shifts, it also hints at a possible bullish resurgence as bullish momentum might be gathering strength.
NZD/USD hourly chart
Taking both into account, while the daily chart may hint at a generalized negative posture, the hourly chart suggests the possibility of a reprieve for the bulls very soon. The fact that the NZD/USD pair is holding above the 200-day SMA also lends some weight to this counter-trend, bullish outlook.
NZD/USD
