Renews fortnight low near 0.6450, 20-DMA tests further downside

  • NZD/USD remains on the back foot for the third consecutive day as it refreshes multi-day low.
  • RSI retreat, easing bullish bias of MACD favor sellers.
  • 20-DMA, 23.6% Fibonacci retracement challenge further declines, bulls need to cross 0.6575 to retake controls.

NZD/USD holds lower ground near a two-week low of 0.6439, down 0.67% intraday around 0.6448 by the press time.

In doing so, the Kiwi pair justifies the previous day’s downside break of an upward sloping support line from May 13, now resistance around 0.6525.

Also keeping the NZD/USD bears hopeful is the quote’s reversal from the monthly horizontal area around 0.6565-75.

Furthermore, the receding bullish bias of the MACD signals and RSI (14) retreat, not oversold, adds strength to the pair’s downside targeting the 20-DMA support of 0.6424.

Additionally challenging to the NZD/USD bears is the 23.6% Fibonacci retracement of the April-May downside, near 0.6410, as well as the 0.6400 threshold.

In a case where NZD/USD drops below 0.6400, it becomes vulnerable to revisiting the yearly low of 0.6218.

Meanwhile, the corrective pullback may initially aim for the 0.6525 support-turned-resistance before targeting the 0.6565-75 resistance area.

However, a clear run-up beyond 0.6575 won’t hesitate to direct NZD/USD buyers towards the 61.8% Fibonacci retracement level of 0.6720.

NZD/USD: Daily chart

Trend: Limited downside expected


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