NZD/USD looks to extend losses due to the stronger US Dollar.
Technical indicators suggest a bearish sentiment in the pair.
Major level at 0.5800 aligned with the monthly low could act again as support.
NZD/USD struggles to remain in the positive territory after minor losses registered in the previous session due to weaker upbeat S&P Global PMI from the United States (US).
US S&P Global Composite PMI showed growth in October, rising from 50.2 to 51.0. The Services PMI experienced an increase, reaching 50.9, while the Manufacturing PMI rose to 50.0. The manufacturing index has maintained a level above the 50-point threshold in the last six months, indicating a positive shift in that sector.
NZD/USD trades around the 0.5850 psychological level during the European session on Wednesday. The pair has almost trimmed its intraday gains as the US Dollar (USD) continues the gains for the second successive day.
The nine-day Exponential Moving Average (EMA) at 0.5870 appears to be the key barrier, followed by the 0.5900 psychological level.
A firm break above the latter could open the doors for the NZD/USD pair to explore the region around the 23.6% Fibonacci retracement at 0.5950.
On the downside, the region around the major level at 0.5800 aligned with the monthly low at 0.5807 could act again as the immediate support for the NZD/USD pair.
The Moving Average Convergence Divergence (MACD) line remains beneath both the centerline and the signal line. The financial sonnet echoes a bearish refrain for the NZD/USD pair.
Furthermore, the NZD/USD pair unveils a bearish momentum, as the 14-day Relative Strength Index (RSI) flaunts a palpable penchant for weakness, gracefully bowing beneath the 50 level.
NZD/USD: Daily Chart