The NZD/USD pair lost ground on Friday, sliding 0.30% to settle near 0.5590. This downturn casts doubt on the sustainability of the pair’s recent consolidation above its 20-day Simple Moving Average (SMA), a region that might still offer a line of defense for buyers hoping to maintain upward traction. With sellers beginning to chip away at gains seen earlier in the week, it remains uncertain whether the pair can cling to its fragile support zone.
From a technical perspective, momentum readings are mixed. The Relative Strength Index (RSI) has retreated sharply to 40, underscoring a renewed bout of bearish pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram continues to produce green bars, suggesting that some underlying bullish sentiment persists but in a less confident manner. These conflicting signals underscore the delicate nature of the current price action.
Should NZD/USD consolidate effectively near the 20-day SMA, now around the 0.5600 mark, buyers may attempt another push higher, with 0.5630 serving as an interim hurdle before a potential run at 0.5650. Conversely, a decisive breach below 0.5580 would likely hand control back to the bears, exposing lower targets near the 0.5550 region and undermining the pair’s nascent support base.
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