Nzdusd Trades In Bearish Tone

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Nzdusd Trades In Bearish Tone

Nzd/Usd Trades Under 0.5950, 9-Ema Acts As Resistance

NZD/USD is now holding on to its gains after experiencing losses in the earlier sessions. For now, NZD/USD is trading at a rate of 0.5920, with 0.5950 acting as resistance on Wednesday.

On the D1 chart of NZD/USD, it is clear that the NZD/USD is in a downtrend. The pair is stuck in a descending price channel and has yet to make a breakout.

Nzd/Usd Trades Under Bearish Trend

The chart of NZD/USD shows that 9 EMA is still below the longer 14 EMA. That's a sign that NZD's short-term weakness is still very strong.

Also, the RSI (14) indicator shows a reading below 50. This is a sign that the bearish momentum is still controlling the NZD/USD pair. If the RSI declines near 30, it would indicate that the selling pressure on the NZD has increased manifolds.

On the way down, the first support for the NZD/USD is seen near 0.5900. Beyond that, there are also key levels to watch, including 0.5880, 0.5860, and 0.5850.

It is worth noting that a break of 0.5800 will be a sign that more bears have joined the party. In that case, the NZD/USD will then try to break the 0.5860 support, which is also the lower boundary of the price channel.

On the flip side, the first resistance is seen at 0.5961. That's the same level where the 9-EMA is present and acting as a dynamic resistance. Above that, the 0.5977 - 0.5980 area is also a key resistance where the 14 EMA is located on the D1 chart.

If NZD/USD manages to break the 14 EMA on the D1 chart, it will signal a momentum shift. In that case, the next target for the NZD/USD will be 0.6100, followed by the next target at 0.6120.

Right now, it appears that the USD rally has temporarily stopped. Now, that's good news for the NZD as it could help it to shift the dynamics & trend in its favor.

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