FX.co ★ NZD/USD

The Kiwi pair is experiencing downward pressure, trading around 0.5600 during the early Asian trading hours on Friday. The price continues to face a bearish sentiment, primarily driven by market expectations of a potential victory for former President Donald Trump in the upcoming U.S. presidential election. With these political uncertainties weighing on the NZD, traders are closely watching global developments that could shift the market's direction. Market Sentiment and Broader Economic Outlook: Market sentiment surrounding the U.S. presidential election and global economic conditions will continue to play a significant role in shaping the NZD/USD outlook. If political developments in the U.S. continue to generate uncertainty or volatility, the USD could strengthen as a safe-haven currency, putting additional pressure on the New Zealand Dollar. On the other hand, any signs of economic improvement in New Zealand or a shift in global risk sentiment could offer support to the Kiwi. Technical Analysis of the NZD/USD: If the pair re-enters a downward trend, it may find immediate support at the upper boundary of the descending channel, which is aligned with the nine-day EMA at the 0.5723 level. This area could act as a buffer against further declines, providing short-term stability to the Kiwi. A break below this support would suggest further weakness, opening the door for a move toward even lower levels, particularly if the broader trend remains bearish.

The nine-day EMA remains positioned below the 14-day EMA, reinforcing the prevailing weakness in the trend. This suggests that the price is struggling to gain momentum against the Dollar. Additionally, the 14-day Relative Strength Index (RSI) is hovering below the 40.00 mark, further confirming the persistence of bearish momentum.