FX.co ★ Blackpink | NZD/USD

The NZD/USD currency pair sees some selling interest after recording a mild upward move to the 0.5930 area, and it remains close to the lower end of its daily range in the initial part of the European trading session on Tuesday. On the downside, the bearish players look for a move below the 0.5900 level before entering a fresh decline from around the 0.6000 psychological level or the highest level seen in three months, in August. The US Dollar (USD) manages to record positive momentum after market participants increase the probability of a US Federal Reserve (Fed) interest rate hike in September amid inflation risks linked to rising oil prices. However, the negative aspect appears to be softened, as traders may choose not to be overly bold in their trades and wait until Wednesday’s RBNZ policy decision. This time, attention would turn to the US non-farm payroll report, which is expected on Friday and is one of the most important pieces of economic news for USD currency pairs. Other than that, geopolitical news flow may give NZD/USD an edge. From the technical perspective, NZD/USD faces renewed downside pressure on the four-hour chart as price action weakens below the 100-period Simple Moving Average. A decisive break below this moving average would signal to sellers and confirm that the recent recovery is losing strength. The Moving Average Convergence Divergence indicator remains slightly below the zero line, showing bearish pressure. At the same time, the Relative Strength Index is holding in the mid-30s, reflecting weak momentum and weak buying conviction. However, the RSI has not yet reached deeply oversold conditions, leaving room for additional declines before a stronger rebound becomes likely. Despite the softer tone, NZD/USD continues to hold above the 200-period SMA near 0.5876. This longer-term average remains an important defensive level and helps keep the broader structure from turning bearish. Price is also trading near an upward-sloping trendline reference around 0.5900, keeping the level important for direction. A clear break below 0.5900 would strengthen the bearish case and signal stronger selling pressure. Until such a breakdown occurs, the pair could remain caught between nearby support and overhead resistance. If selling pressure intensifies, the 200-period SMA at 0.5876 becomes the next downside objective. Buyers may attempt to defend this area as a key medium-term base. A successful rebound from 0.5876 could stabilize the pair and trigger a recovery. Conversely, a sustained move below the 200-period SMA would weaken the broader structure and expose NZD/USD to further losses. On the topside, the 100-period SMA around 0.5915 represents the first resistance. A sustained break above this barrier would improve the short-term outlook and suggest buyers are rebuilding momentum. Overall, the bias remains neutral to mildly bearish while price stays below 0.5915, with 0.5900 and 0.5876 serving as key levels for the next directional move.