Bears in control as selling momentum intensifies

• NZD/USD extends losses, declining further in Wednesday’s session.
• Oversold RSI reflects intensifying selling pressure but opens the possibility of an upwards correction.

The NZD/USD pair continued its downward trajectory on Wednesday, falling towards the 0.6000 psychological level as selling momentum resumed. Sellers remain in firm control, with the pair reaching lows not seen since August.

The Relative Strength Index (RSI) remains oversold, currently residing at 31. The indicator’s downward slope signals increasing selling pressure, aligning with the red bars on the Moving Average Convergence Divergence (MACD) histogram, further confirming the growing bearish momentum.

NZD/USD daily chart

Technically, the NZD/USD remains below its key moving averages, with the 100-day Simple Moving Average (SMA) at 0.6100 and the 200-day SMA hovering around 0.6150 acting as formidable resistance levels. These barriers limit the pair’s potential for upward momentum. However, the oversold nature of the RSI might be signaling that an upwards correction is on the horizon.

Support levels: 0.6000, 0.5950, 0.5930. Resistance levels: 0.6070, 0.6100, 0.6130