NZD/USD Loses Steam as Momentum Fades Ahead of Key Resistance

The New Zealand Dollar (NZD) has been on an upward trajectory against the US Dollar (USD), but its momentum appears to be fading. At press time, the NZD/USD pair was trading at 0.5789, having bounced off daily lows of 0.5767.

The Kiwi Dollar's recovery is being capped by the 50-day Simple Moving Average (SMA) at 0.5793, which is just below the key resistance level of 0.5800. A breach of this level would expose the confluence of the 100- and 200-day SMAs at 0.5823/24, followed by the July 21 high at 0.5874.

However, if the NZD/USD pair falls below the low of the week (LOW) of 0.5762, it could lead to further downside. The next key support is the July 13 low of 0.5743, followed by 0.5700.