The NZD/USD currency pair has been stabilizing near the 20-day Simple Moving Average (SMA) as both bulls and bears continue their intense tussle. Despite attempts to breach the 0.6220 area and the 20-day SMA, neither side has been successful, indicating a consolidation phase following a sharp increase in mid-May. The pair dipped to a low of 0.6115 before recovering and finding support at the 20-day SMA of 0.6140.
In the daily chart, the Relative Strength Index (RSI) has shifted momentum downwards, suggesting a slight decline in buying pressure. This is reflected in the flat red bars in the Moving Average Convergence Divergence (MACD) indicator, further solidifying the consolidation narrative. The daily chart indicators underscore continued consolidation with a slight downward momentum as both bulls and bears struggle for control.
The immediate support for the NZD/USD is at the 20-day SMA of 0.6140, with the 100 and 200-day SMAs converging in the 0.6050-0.6060 region to provide a strong support base. This convergence may act as an anchor for correction if bears take control, with any movements below this point potentially signaling sell conditions. On the upside, the 0.6200 level serves as the main resistance, and a breach of this level could be considered a buy signal.
Overall, the NZD/USD remains in a consolidation phase as both bulls and bears battle for control near the 20-day SMA. The daily chart indicators suggest a possible slight decline in buying pressure, but the strong support base provided by the convergence of the 100 and 200-day SMAs may limit further downward movements. Traders should keep a close eye on the 0.6200 resistance level for potential buy signals and monitor any breaches of the support levels for possible sell conditions.
