On Wednesday, the NZD/USD pair experienced a significant drop, heading towards the convergence of the 100 and 200-day Simple Moving Averages (SMAs) near the key level of 0.6070. This downward movement indicates a bearish outlook for the Kiwi as it approaches the crucial support level. The Relative Strength Index (RSI) for the pair on the daily chart has fallen to 42, signaling a strengthening bearish momentum. The Moving Average Convergence Divergence (MACD) also supports this sentiment with rising red bars, indicating the dominance of sellers in the market.
Immediate support for the NZD/USD is seen at the 0.6070 level where the 100 and 200-day SMAs are converging. Further support lies at 0.6050, with a potential breakdown below these levels leading to more selling pressure. On the other hand, resistance is now at 0.6100, followed by the 20-day SMA at 0.6145 and resistance levels at 0.6170 and 0.6200. A decisive breakthrough above these levels could signal a shift in favor of the bulls and the end of the current bearish trend.