NZD Dives Below 0.5800 as Bears Take Control of Kiwi Dollar
The New Zealand Dollar (NZD) has broken below the psychological level of 0.5800, reaching a near two-month low of 0.5797 against the US Dollar (USD). This move comes after the NZD/USD failed to clear a confluence of key Simple Moving Averages (SMAs), shifting its technical bias downward.
The Relative Strength Index (RSI) has turned bearish, indicating further downside is expected for the Kiwi Dollar. If it continues to dive below 0.5800, the next support levels would be at 0.5761 and 0.5750, with a significant psychological level at 0.5658.
The overall US Dollar strength, driven by money markets expecting a rate hike by the Federal Reserve, has shifted momentum in favor of the Greenback. This, combined with the NZD/USD's failure to clear the SMA confluence, has led to the current bearish technical bias.