NZD/USD Price Analysis: Sellers flirt with 0.6300 with eyes on yearly low
|- NZD/USD bears take a breather following the biggest daily fall in a week.
- Short-term SMAs stop bears on the way to weekly horizontal support comprising multi-month low.
- Descending RSI, not oversold, keep sellers hopeful, 100-SMA limits upside momentum.
NZD/USD holds lower ground near 0.6300, after declining the most in a week, as bears await the key New Zealand Annual Budget Release during early Thursday.
In doing so, the Kiwi pair jostles with the 21-SMA and 50-SMA amid a downward sloping RSI (14) line, not oversold.
Not only the RSI but the pair’s inability to cross one-week-old horizontal resistance, as well as stay beyond a monthly descending trend line also keeps NZD/USD sellers hopeful.
That said, the quote’s latest weakness aims the area comprising the monthly low, also the lowest levels since 2020, around 0.6225-15.
Following that, the 0.6200 threshold may offer an intermediate halt before directing bears towards April 2020 peak near 0.6175.
Alternatively, a one-month-old downward sloping resistance line restricts immediate upside around 0.6335, a break of which will direct buyers towards a horizontal region from May 09, surrounding 0.6375-85.
Even if the NZD/USD prices rise past 0.6385, a clear run-up past-100-SMA, close to 0.6390, becomes necessary for the buyers to retake control.
NZD/USD: Four-hour 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.