NZD/USD technical analysis: Recovers a major part of early lost ground to 0.6490-80 support area

• The NZD/USD pair showed some resilience below the 0.6500 handle and once again managed to find some support near the 0.6490-80 horizontal zone.
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• The said region had acted as strong support in late-May and was retested in mid-June, which should now act as a key pivotal point for short-term traders.

 Given the recent slump of over 300-pips from the vicinity of the 0.6800 handle - three-month tops set on July 19, extremely oversold conditions seemed to be the only factor holding traders from placing any aggressive bearish bets and helped limit further downside, at least for the time being.
 
Investors also seemed reluctant and preferred to wait on the sidelines ahead of the upcoming release of quarterly employment details from New-Zealand on Tuesday, which followed by the latest RBNZ policy update on Wednesday will help determine the next leg of a directional move.
 
However, a sustained breakthrough the mentioned support now seems to accelerate the fall further towards September 2018 swing lows - around the 0.6430 region, before the pair eventually slides below the 0.6400 handle towards testing its next major support near the 0.6380-75 region.
 
Meanwhile, on the upside, any further recovery now seems to confront some fresh supply near mid-0.6500s and seems more likely to remain capped near the 0.6575-80 region amid renewed fears of a full-blown trade war between the world's two largest economies.

NZD/USD daily chart