Bearish bias occurs as the pair collapses

• NZD/USD is down 0.84% ​​on Friday to trade at 0.6170.
• The RSI and MACD indicators align with the bearish outlook, signaling negative momentum.
• The 20-day SMA presents a strong barrier against sellers.

The NZD/USD pair traded weakly in a narrow range, but Friday’s sharp decline has turned the technical outlook bearish, at least in the short term, ending the week down over 0.80%.

The Relative Strength Index (RSI) has dropped sharply, indicating that the momentum is shifting in favor of the bears. The RSI is currently trading at 52, which is in neutral territory. However, the sharp decline suggests that the pair is likely to break below the 50 level, which would confirm the bearish trend. The Moving Average Convergence Divergence (MACD) has printed a fresh red bar and also suggests that the momentum is negative and the pair will continue to decline.

NZD/USD Daily Chart

The 20-day SMA at 0.6160 provides strong support against selling pressure, but a break below this level would open the door for further declines towards 0.610-0.6150. However, if the pair manages to hold the line, 0.6200 could be retested.