• Starting Friday, the NZD/USD pair experienced a sharp downturn, heading quickly towards the 0.5600 level as heavy selling pressure mounted ahead of the Asian trading day.
• Diving into the momentum indicators, the signals are undeniably bearish. Both the MACD and the Bull Bear Power indicators are strongly signaling selling pressure.
• Looking at the bigger picture, major moving averages and the resistance level near 0.5700 are currently acting as a strong ceiling, effectively capping any attempts for the price to climb higher – at least for now.

The NZD/USD pair experienced a sharp plunge on Friday, dramatically dropping towards the 0.5600 level as strong bearish momentum swept through the market. The pair traded deeply in negative territory, giving up over 3% of its value throughout the day, eventually settling around the midpoint of its recent fluctuations between 0.5551 and 0.5798. The selling pressure was consistent and dominant all day long, with technical indicators consistently reinforcing this downward movement. This price action played out across Friday’s trading session as the markets prepared for the start of trading in Asia.

Daily chart

Looking at the technical picture, everything suggests a clear downward bias. Both the Moving Average Convergence Divergence (MACD) and the Bull Bear Power indicator are flashing clear ‘sell’ signals, which only strengthens the overall bearish feeling. Interestingly, the Relative Strength Index (RSI) reading of 37.21 is now getting close to the oversold threshold.

Adding to the bearish picture, moving averages across different timeframes are all painting a similar story. Both the short-term 10-day Exponential Moving Average (EMA) at 0.57105 and the 10-day Simple Moving Average (SMA) at 0.57148 are clearly pointing downwards. Looking at the longer-term averages, like the 20-day SMA at 0.57342, the 100-day SMA at 0.57177, and even the 200-day SMA way up at 0.59039, they collectively confirm a sustained and ongoing period of selling pressure.