The NZD/USD downtrend escalated after it broke below the $0.575 support. Robust selling pressure drove the Stochastic and RSI 14 into oversold territory, depicting 8 and 19 in the description.
This development in the technical indicators suggests that the American currency is overpriced in the short term against the Kiwi. Therefore, a market consolidation could be on the horizon.
NZDUSD Technical Analysis – 19-December-2024
The downtrend is valid as long as the prices are below $0.575 or below the 50-period simple moving average. However, due to the oversold signals given by the momentum indicators, NZD/USD is likely to test the upper resistance levels before the downtrend resumes.
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That said, immediate resistance is at $0.565. From a technical perspective, NZD/USD could rise toward $0.575 if bulls close and stabilize above the immediate resistance.
Please note that joining a bear market when it is saturated with sellers is not recommended. Therefore, retail traders and investors should monitor the key resistance levels (0.562, 0.57, and 0.575) for bearish signals such as candlestick patterns.
Additionally, the next bearish target is $0.550, with prices below 0.571.