The New Zealand Dollar (NZD) has maintained its bearish trend against the US Dollar (USD), but is showing signs of a mild recovery on Friday, appreciating to levels around 0.5770 after hitting multi-week lows below 0.5750 earlier in the session [1]. Over the previous three days, NZD/USD dropped about 1.6% and is on track for a 0.85% weekly decline, making the kiwi one of the worst-performing currencies recently. This weakness is attributed to increased support for the safe-haven USD following the consequences of the war between the US and Iran [1].
Technical indicators suggest a potential bullish correction may be underway. The Relative Strength Index (RSI) has recovered from oversold territory and is now near 45, indicating fading selling pressure. The Moving Average Convergence Divergence (MACD) line is close to the signal and zero line, with a marginal positive tilt, hinting at modest recovery momentum [1]. However, bulls remain capped below the confluence of trendline resistance from March 23 highs at 0.5775 and the 0.5780 intra-day high. A clear break above these levels could ease bearish pressure and shift focus towards the 38.2% Fibonacci retracement at 0.5800 [1]. On the downside, bears are contained above the session low at 0.5760, with further downside targets at 0.5750 and 0.5720 [1].
The currency heat map shows that the New Zealand Dollar was the strongest against the Swiss Franc today, with a 0.28% gain, but only a 0.10% gain against the US Dollar, reflecting its relative weakness compared to other majors [1].
No forward-looking statements or analyst opinions beyond technical analysis are provided in the source [1].
CONCLUSION
NZD/USD is attempting a modest recovery after recent steep declines, but remains under bearish pressure due to geopolitical tensions favoring the USD. Technical indicators suggest a possible correction, but resistance levels must be breached for a sustained rebound. The market impact is medium, with sentiment still tilted negative as the kiwi struggles to regain momentum.