NZD/USD Plunges Towards Support Amid Diverging Signals

NZD/USD Price Analysis – September 30th

Kiwi is firmly within a bearish channel following a significant failed breakout. The higher timeframe confirms that sellers are in control. However, a bullish divergence setup is emerging on the short-term chart. This suggest that the downward momentum may be waning and a corrective bounce could be on the horizon.

NZD/USD Key Levels

Support Levels: 0.5710, 0.5550
Resistance Levels: 0.5802, 0.5900

The daily chart for NZD/USD shows a clear bearish picture. The recent attempt to break out of a descending channel resulted in a swing high failure pattern, a strong indication of seller dominance. The price has since fallen sharply, breaking below the $0.5800 pivot and continuing its descent. The bearish trend is strongly confirmed by the technical indicators.

The daily chart opens the Moving Average Convergence Divergence to be crossing below the zero line. This is a key signal that momentum is firmly in bearish territory. The Relative Strength Index (RSI) is also weak at 35.90 market area, reflecting sustained selling pressure. With this technical setup, the next logical target for sellers is the major support level at $0.5710.

NZD/USD Short-Term Trend: Bullish (4-Hour Chart)

The 4-hour chart provides compelling evidence that a short-term bottom is forming. As the price made its final push lower, the RSI formed a higher low, creating a clear bullish divergence—a strong leading indicator that the downtrend was losing power.

This has been followed by a bullish MACD crossover, where the MACD line has crossed above its signal line. It confirms that immediate momentum has shifted in favor of the buyers. The price is now attempting to build a base after successfully holding the key support.

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