NZD/USD Price Analysis: Breach of 20-day SMA support opens door to further declines

• 
  NZD/USD
  faced
  heav losses,
  breaching
  the
  previously
  held
  20-day
  SMA
  support,
  now
  resistance.
• 
  The
  technical
  outlook
  transitions
  towards
  a
  bearish
  sentiment,
  following
  Wednesday’s
  sharp
  decline.
• 
  Bears
  broke
  the
  20-day
  SMA
  and
  are
  eyeing
  the
  strong
  support
  formed
  by
  the
  convergence
  of
  the
  100
  and
  200-day
  SMAs
  near
  0.6070.

On
Wednesday,
the

NZD/USD
dropped,
losing
more
than
0.70%
to
0.6080,
obliterating
its
support
at
the
20-day
Simple
Moving
Average
(SMA),
which
was
regained
last
week
and
tainted
the

outlook
with
red.

As
for
the
daily
technical

indicators,
the
Relative
Strength
Index
(RSI)
is
currently
at
43,
showing
a
downward
trajectory,
indicating
a
considerable
decrease
in
buying
momentum
compared
to
Tuesday’s
close
at
52.
The
Moving
Average
Convergence
Divergence
(MACD)
printed
a
fresh
red
bar,
suggesting
an
increasing
bearish
momentum.

NZD/USD
daily
chart

In
terms
of
resistance
for
bulls
to
recover,
the
immediate
challenge
lies
at
the
0.6115
level
(20-day
SMA)
now
turned
into
resistance,
and
then
at
0.6150.
A
decisive
close
above
these
levels
will
be
crucial
to
negate
the
recent
bearish
momentum
and
might
assist
bulls
in
making
a
fresh
attempt
to
reclaim
control.

On
the
downside,
immediate
support
is
near
the
crucial
convergence
of
100
and
200-day
SMAs
at
0.6070.
A
conclusive
break
below
this
level
could
affirm
the
negative
outlook,
triggering
a
deeper
corrective
slide
towards
0.6050
and
then
the
0.6030
support
levels.