The NZD/USD saw a slight increase to 0.5937 during Wednesday’s trading session, showing some small gains. Despite long-term bearish pressure, there are signs that the bulls may be starting to gain momentum as sellers lose their grip on the market.
On the daily chart, the Relative Strength Index (RSI) is in negative territory but showing signs of a possible minor correction after a period of low readings. The Moving Average Convergence Divergence (MACD) also indicates a shift towards positive momentum, although the overall trend remains bearish.
Looking at the hourly charts, the RSI and MACD are showing fluctuations and a decrease in downward momentum, suggesting a potential pause in the bearish trend in the short term.
The NZD/USD remains below key Simple Moving Averages (SMAs) such as the 20-day, 100-day, and 200-day, indicating a bearish trend in both short and long-term frames. The recent rejection of buyers at 0.5960, near the 20-day SMA, signals the continued dominance of sellers in the market. If buyers can break above this level in the coming sessions, it could indicate a shift in momentum towards the bulls.
Overall, while there are indications of potential buying momentum building, the current trend is still bearish. The next sessions will be crucial in determining whether the bulls can gain control of the market.