NZD/USD Price Analysis: Holds above 50-day SMA, charts lean bearish

• NZD/USD hovers near 50-day SMA for the fifth straight trading day. 
• Risks are skewed to the downside with the daily chart leaning bearish.

NZD/USD is trading near 0.6558 at press time, having defended the 50-day simple moving average (SMA) support at 0.6548 a few minutes ago. 

Sellers failed to establish a foothold below the key SMA for the fourth straight trading day on Monday. As such, one may expect a technical bounce. Technicals, however, suggests otherwise. 

To start with, the daily chart shows the pair has dived out of a five-month ascending trendline. The breakdown is backed by a below-50 or bearish reading on the 14-day relative strength index. In addition, the 5- and 10-day SMAs are trending south, indicating a bearish setup. 

As such, a deeper drop toward the 200-day SMA at 0.6324 looks likely. A daily close above 0.66 – the high of the Doji candle created on Aug. 12 – is needed to invalidate the bearish setup. 

Daily chart

Trend: Bearish

Technical levels