On Friday, the New Zealand dollar took a substantial hit against the U.S. dollar, heading swiftly toward the 0.5600 mark. This dramatic drop occurred ahead of the Asian trading session and highlighted substantial losses. Bearish momentum remained strong with technical indicators like the MACD and Bull Bear Power pointing to significant selling activity. Any efforts by the pair to climb back were hindered by resistance around the 0.5700 level.
The NZD/USD pairing saw a significant decline, plunging towards the 0.5600 area, with sellers maintaining a firm grip throughout the day. The exchange dropped over 3%, fluctuating between recent lows of 0.5551 and highs of 0.5798. As the session moved towards the Asian market opening, the downtrend was quite pronounced, verified by a range of technical indicators.
Looking at the daily chart, the technical landscape continues to signal a clear downward bias. The Moving Average Convergence Divergence (MACD) and Bull Bear Power indicators are both flashing sell signals, further intensifying the bearish outlook. The Relative Strength Index (RSI), currently at 37.21, hints at nearing oversold conditions, while not fully there yet.
Every moving average underscores the negative sentiment. The 10-day Exponential Moving Average (EMA) at 0.57105 and the 10-day Simple Moving Average (SMA) at 0.57148 both trend downward. In a broader scope, the 20-day SMA at 0.57342, the 100-day at 0.57177, and the 200-day at 0.59039, all point to a prolonged phase of selling pressure, hinting at challenges for any upward momentum in the near term.
