Bears take the reins, technical outlook signals further losses

• NZD/USD fell 0.60% to 0.6125, extending its recent downtrend.
• The RSI is in negative territory and falling, while the MACD histogram is red and rising.
• A break below 0.6100 could open the door for further decline towards 0.6000.

In Monday’s session, the NZD/USD pair extended its recent decline, falling 0.60% to 0.6125. The pair has been in a downtrend lately, and today’s losses extend that trend. Technical indicators are also bearish, suggesting that selling pressure is likely to continue.

The Relative Strength Index (RSI) is currently at 40, which is in negative territory and falling sharply. This suggests that selling pressure is building and that the bears are in control of the market. The Moving Average Convergence Divergence (MACD) histogram is also red and rising, indicating a bearish outlook. As long as the RSI remains below 50 and the MACD histogram remains red, the technical outlook will remain bearish for NZD/USD.

NZD/USD Daily Chart

The overall outlook for NZD/USD is bearish as the pair has lost its 20-day simple moving average (SMA). On the bright side, sellers have encountered a barrier at the 100-day SMA at 0.6120 that may mitigate short-term losses. That said, a break below this level could open the door for a further decline towards 0.6000.