NZD/USD Price Analysis: Bears approach 11-week-old support near 0.6220
- NZD/USD holds lower ground near six-week low, prints four-day downtrend.
- Clear break of three-month-old ascending trend line, bearish MACD signals favor sellers.
- Upward-sloping support line from late November holds the key to further downside toward 200-DMA.
- Bulls need validation from fortnight-old descending resistance line.
NZD/USD bears stay in the driver’s seat for the fourth consecutive day, down 0.23% intraday around 0.6240 during early Friday. In doing so, the Kiwi pair remains depressed near the 1.5-month low marked the previous day.
That said, the quote’s sustained downside break of the previous support line from mid-November 2022, now resistance around 0.6300, keeps the pair bears hopeful. Adding strength to the downside bias are the bearish MACD signals and the lower high formation on the daily chart.
As a result, the NZD/USD bears are well-set to battle with a 2.5-month-long support line, currently around 0.6220.
However, the quote’s further downside will need validation from the 0.6200 round figure and the 200-DMA level of 0.6177 to keep the bears in command.
Meanwhile, the previous support line from November, around 0.6300, guards the NZD/USD pair’s recovery moves.
Following that, a two-week-old descending resistance line, close to 0.6340 at the latest, will be crucial for the pair buyers to cross. Even so, the weekly high of 0.6390 and the .06400 round figure could challenge the upside momentum.
In a case where the NZD/USD remains firmer past 0.6400, the odds of witnessing a run-up toward the monthly high near 0.6540 can’t be ruled out.
NZD/USD: Daily chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
