NZD/USD Price Analysis: Pessimistic technical outlook, RSI in oversold area signals might trigger a correction

• The NZD/USD declined in Wednesday's session, continuing its bearish momentum.
• RSI has dropped to 34, indicating oversold conditions and rising selling pressure.
• MACD remains flat and red, suggesting a bearish trend with weakening selling pressure.

In Wednesday's session, the NZD/USD extended its recent decline, falling by 0.27% to 0.6050. The technical indicators remain bearish, indicating a continuation of the selling pressure that has dominated recent trading sessions.

The Relative Strength Index (RSI) has fallen into oversold territory, with a value of 34 and a sharply declining slope. This suggests that selling pressure is increasing and that the bears are gaining strength but that a correction might be in the horizon. The Moving Average Convergence Divergence (MACD) histogram is flat and red, indicating a bearish outlook. As long as the RSI remains below 50 and the MACD remains red, the technical outlook will remain bearish for the NZD/USD but sellers shouldn't take off the table a healthy correction.

NZD/USD daily chart

The overall outlook for the NZD/USD remains bearish. The pair has been trading below key support levels for several sessions and has yet to show any signs of a recovery. The 0.6100 area where the 100 and 200-day Simple Moving Average (SMA) remains a key level to watch, as a consolidation below this level could open the door for a further decline towards 0.6000 while an upwards break of this level might trigger a recovery.