NZD/USD Price Analysis: Well-set for further downside past 0.6200
- NZD/USD renews intraday low, extends previous week’s pullback from two-month high.
- Successful break of one-month-old ascending trend line, clear U-turn from 0.6385-90 resistance confluence favor sellers.
- Looming bear cross on MACD, steady RSI (14) adds strength to downside bias.
NZD/USD takes offers to refresh intraday low near 0.6240 during early Monday. In doing so, the Kiwi pair defends the previous week’s downward trajectory from a two-month high while breaking an upward-sloping support line from March, now immediate resistance, amid the Easter Monday holiday.
Not only the trend line break but a U-turn from the two-month-old horizontal resistance area and bearish MACD signals, as well as the steady RSI (14) line, also favor the NZD/USD sellers.
With this, the Kiwi pair is all set to attack the 0.6200 round figure. However, the 200-DMA hurdle of around 0.6160 can challenge the bears afterward.
Following that, the Year-To-Date (YTD) low marked in March around 0.6080 and the 0.6000 psychological magnet can lure the NZD/USD sellers during the pair’s further downside.
On the contrary, recovery moves need to cross the support-turned-resistance line, around 0.6260 at the latest, to convince intraday buyers of the NZD/USD pair.
Even so, the 50% and 61.8% Fibonacci retracement level of the pair’s February-March fall, around 0.6310 and 0.6365 in that order, can challenge the bulls.
It’s worth noting that the NZD/USD upside remains elusive unless the quote stays successfully beyond the two-month-old horizontal resistance area surrounding 0.6385-90.
NZD/USD: Daily chart
Trend: Further downside expected