- NZD/USD continues the strong selling interest.
- Stochastic and RSI keep moving south.
- NZD/USD is significantly heading south in the short-term view.
NZD/USD plunged to a fresh lower low, recording a 26-month low at 0.5756. The pair is endorsing the steep descending tendency that started on September 30 with the technical oscillators confirming the negative momentum. The stochastic is standing in the oversold area, while the RSI is falling near the 30 level.
If the market continues with its bearish structure, the next levels for traders to keep in mind are the round numbers of 0.5700 and 0.5600 before the October 2022 bottom at 0.5510.
On the other hand, if the bulls gain control, the pair could touch the 0.5770 immediate resistance, followed by the 0.5815 level and the 20-day simple moving average (SMA) at 0.5850, which coincides with the downtrend line. A break above this area could pave the way for a test of the 0.5920 resistance ahead of the 50-day SMA at 0.5940.
In a nutshell, NZD/USD is significantly heading south in the short-term view, being ready to exit the long-term trading range of 0.6380-0.5770.