NZD/USD Price Forecast: Kiwi breaks 0.5800 as bears take control

The Kiwi Dollar fails to clear a confluence of key Simple Moving Averages (SMAs) and dives below 0.5800, printing a near two-month low of 0.5797. At the time of writing, NZD/USD is down 0.65% and poised to test lower levels if it closes below 0.58.

NZD/USD Price Forecast: Technical Outlook

From a technical perspective, the NZD/USD shifted to a downward bias. After clearing the confluence of the 100-, 50- and 200-day Simple Moving Averages (SMAs) at 0.5854, 0.5850 and 0.5842, it opened the door to breach the 0.5800 mark.

Also, overall US Dollar strength, driven by money markets expecting a rate hike by the Federal Reserve, shifted momentum in favour of the Greenback. The Relative Strength Index (RSI) turned bearish, an indication that further downside is expected.

If NZD/USD dives below 0.5800, the next support would be the July 29 low of 0.5761. Below is the 0.5750 psychological level, before printing a leg down to the July 3 high, which turned support at 0.5658.

Should buyers move in and push NZD/USD above 0.5855, it will expose 0.5900. On further strength, the next key resistance levels are the 0.6000 figure, followed by the February 18 swing high of 0.6054.

NZD/USD Price Chart – Daily