NZD/USD technical analysis: Corrects from multi-week tops, bears eyeing a break below 0.6400 mark
|- The pair continued with its struggle to make it through the 0.6440-45 supply zone.
- Sustained weakness below the 0.6400 handle needed to confirm further downfall.
Having repeated failed to clear the 0.6440-45 horizontal resistance, the NZD/USD pair witnessed a modest intraday pullback on Tuesday and finally broke down of its two-day-old trading range.
The intraday slide has now dragged the pair closer to an important confluence support near the 0.6400 handle - comprising of 100-hour SMA and 23.6% Fibo. level of the 0.6269-0.6445 up-move.
Meanwhile, technical indicators on hourly charts have again started gaining negative momentum/losing traction, suggesting that the near-term corrective bounce might have run out of the steam.
Moreover, oscillators on the daily chart are yet to catch up with the recent bounce and move back into the positive territory, warranting some caution before placing any fresh bullish bets.
A sustained break below the mentioned confluence support, the pair is likely to accelerate the slide towards 23.6% Fibo. level en-route the next support near the 0.6365-60 region.
On the flip side, the 0.6440-45 region might continue to act as an immediate strong resistance, which if cleared should pave the way for a move toward reclaiming the key 0.6500 psychological mark.
NZD/USD 1-hourly chart
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