NZD/USD Price Analysis: Corrective pullback needs validation from 0.6300 to sustain
|- NZD/USD pauses seven-day downtrend near the monthly low.
- Nearly oversold RSI seems to underpin recovery moves but previous support from early May challenges rebound.
- 20-DMA, descending resistance line from April adds to the upside filters.
- Bearish MACD, key support break favor sellers eyeing 61.8% FE.
NZD/USD portrays a corrective pullback around a one-month low, snapping a seven-day downtrend, during Tuesday’s inactive Asian session. The kiwi pair refreshed the monthly low to 0.6246 before recently bouncing off to 0.6270.
The recovery moves seem to take clues from the nearly oversold RSI (14) line. However, the pair remains below the previous horizontal support line from May 10, broken the previous day, which in turn joins the bearish MACD signal to keep sellers hopeful.
Even if the quote rises past the 0.6300 immediate hurdle, the 20-DMA near 0.6442 and a 2.5-month-old downward sloping resistance line, near 0.6480, will be crucial for NZD/USD buyer’s return.
Also acting as an upside filter is the monthly high near 0.6580.
Alternatively, fresh declines could be aimed for the yearly low surrounding 0.6215 and may again portray indecision near the 0.6200 threshold.
It’s worth noting that multiple lows marked during March and April of 2020 could also challenge NZD/USD near around 0.6150 before directing them to the 61.8% Fibonacci Expansion (FE) of April-May moves, near 0.6070-65.
NZD/USD: Daily chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.