NZD/USD Price Forecast: Bears loom after testing 200-DMA downwards

The New Zealand Dollar extends its losses for the second straight day amid a firm US Dollar courtesy of the Middle East conflict, which fueled fears of higher inflation sparked by the jump in Oil prices. The NZD/USD trades at 0.5889, down 0.80%.

NZD/USD Price Forecast: Technical outlook

Kiwi’s technical picture remains upward biased after briefly testing the 200-day Simple Moving Average (SMA) at around 0.5874, climbing above the latter and finishing the session closer to the 0.5900 figure.

Momentum is bearish biased as depicted by the Relative Strength Index (RSI), which is below its 50-neutral level, aiming towards oversold territory.

Hence, the NZD/USD could extend its losses in the short term if sellers clear the 200-day SMA at 0.5874. Once surpassed, the next area of interest would be the day’s low of 0.5836 ahead of the 100-day SMA at 0.5813. A breach of the latter will expose the January 19 low of 0.5737.

For a bullish resumption, traders must clear key resistance levels like the 50-day SMA at 0.5909. After this, watch the March 3 daily peak at 0.5955 for the next area of supply ahead of 0.6000.

NZD/USD Price Chart – Daily