- NZD/USD’s daily MACD has turned bearish for first since mid-November.
- A corrective pullback to ascending moving average could be in the offing.
NZD/USD could feel the pull of gravity on Monday, as a key indicator is offering a bearish signal for the first time in over a month.
The daily MACD histogram, an indicator used to identify trend changes and trend strength, has dropped below zero, signaling a bullish-to-bearish trend change.
The first negative reading since mid-September indicates the rally from lows near 0.6330 has ended and bears have likely regained control.
The below-zero MACD adds credence to Dec. 13’s bearish inverted hammer and has likely opened the doors for a drop to the ascending 5-week moving average, currently at 0.6555.
At press time, NZD/USD is trading at 0.6602, representing marginal gains on the day.
Daily chart
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Trend: Bearish
Technical levels
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