Kiwi support at moving average cluster
- NZD/USD is currently trading around the 0.5730 level, showing a slight decrease for the day as we approach the Asian trading session.
- The pair is currently testing a significant point where the 20-day and 100-day moving averages converge, and there’s a possibility of further drops if it falls below this zone.
As Friday’s trading session concludes and we look ahead to the Asian markets opening, the NZD/USD has seen a modest decline, currently fluctuating around the 0.5730 area. The pair is still feeling some downward pressure after sellers became more active earlier in the day. Right now, all eyes are on the point where the 20-day and 100-day Simple Moving Averages meet – a really crucial technical point for figuring out what might happen in the short term.
If we check the Relative Strength Index (RSI), it’s taken a bit of a dip, but it’s still above the 50 mark in positive territory. This suggests that while bullish momentum might be fading, it’s not completely gone yet. The Moving Average Convergence Divergence (MACD) is still above zero, but the green bars on its histogram are getting smaller, which also indicates that the upward push is weakening a bit.
From a technical standpoint, if the price clearly breaks through the 0.5730 support level – where those 20-day and 100-day SMAs cross – we could see it fall further, potentially towards 0.5680 and then even the 0.5620 area. On the other hand, if buyers step in to defend this support zone, we might see a rebound with potential targets around 0.5780 and then 0.5820.
