The NZD/USD pair extended its decline on Tuesday, falling 0.35% to 0.5960. The inability of bulls to counter selling pressure led to a further descent below the key 0.6000 level, reaching lows last seen in early May. This move reinforces the bearish sentiment surrounding the pair. Additionally, a confirmed bearish crossover between the 20 and 100-day Simple Moving Averages (SMA) strengthens the negative outlook.
Technical indicators align with the downward trend. The Relative Strength Index (RSI) remains near oversold territory, indicating sustained selling pressure. The Moving Average Convergence Divergence (MACD) also displays rising red bars, amplifying the bearish sentiment. However, the RSI’s proximity to the oversold threshold suggests a potential correction may be on the horizon.
Looking ahead, strong support levels are identified at 0.5950 and within the 0.5930-0.5900 range. Resistance levels are located at the previous support of 0.6000 and around 0.6050.
