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NZD/USD eyes 0.5800 resistance as bullish momentum fades

FXStreet says the pair is around 0.5789 after bouncing from 0.5767, with a drop below 0.5762 seen as opening further downside toward 0.5743 and 0.5700.

Reported · Written up by our desk · Major Pairs

The New Zealand dollar is gaining against the US dollar, with NZD/USD up more than 0.30% and trading around 0.5789 as it tests resistance just below 0.5800, according to FXStreet.

The outlet points to the 50-day Simple Moving Average at 0.5793, slightly under the 0.5800 level, noting the pair recovered from daily lows of 0.5767. It also says momentum has turned bullish based on the Relative Strength Index, but that strength appears to be fading as the RSI nears bearish territory.

FXStreet highlights that a break above 0.5800 would put focus on the area around the 100- and 200-day SMAs at 0.5823 to 0.5824, then the July 21 high at 0.5874. Above that, the next resistance mentioned is 0.5900, followed by the May 29 high beneath 0.6000.

On the downside, the analysis says a move below the low of the week at 0.5762 could expose additional weakness, with support next at the July 13 low of 0.5743 and then 0.5700. Beneath that, it flags the July 7 high at 0.5672.

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