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.
The NZD/USD pair declined to 0.6086, with a significant 0.77% downturn in Friday’s session. The market sentiment leans heavily toward the sellers, however, there is a faint glimmer of hope for the buyers, as they still hold on to the 200-day Simple Moving Average (SMA).
On the daily chart, the Relative Strength Index (RSI) has fallen into negative territory, after recovering above 50 last week, which suggests increasing selling pressure. Moreover, the Moving Average Convergence Divergence (MACD) histogram features rising red bars which further indicate growing bearish sentiment in the market.
NZD/USD daily chart
Moving to the hourly chart, there is a stark contrast. The RSI values are in deep, oversold territories, indicating the recent selling pressure may be overextended. This often foretells a possible price pullback or bullish correction in the near term. Regarding the MACD histogram, the green bars suggest neutral momentum, even though they are flat, indicating no significant change in the shorter term but may also hint that the bulls are gearing up.
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.
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.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/nzd-usd-price-analysis-bearish-pressures-dominate-bulls-may-seek-relief-in-potential-correction-202403152113
