NZD/USD Price Analysis: Drops back to 0.6100 within monthly bearish channel
- NZD/USD fades bounce off the lowest levels since late November 2022 inside one-month-old descending trend channel.
- Failure to cross previous support line from early January, bearish MACD signals keep sellers hopeful.
- Recovery remains elusive below 200-SMA, 0.6215-20 acts as an additional upside filter.
NZD/USD retreat towards the multi-day low marked the previous day while staying with a one-month-old descending trend channel, pressured around 0.6105 during the early Thursday morning in the Asia-Pacific zone.
In doing so, the Kiwi pair portrays the inability to cross the two-month-long previous support line, now immediate resistance near 0.6130. Adding strength to the downside bias are the bearish MACD signals.
It’s worth noting, however, that the lower line of the aforementioned bearish channel, around 0.6070 by the press time, as well as the lows marked during mid-November 2022 near 0.6060, can act as crucial supports to watch during the NZD/USD pair’s further downside.
Should the Kiwi pair remains bearish past 0.6060, the odds of witnessing a slump toward the 0.6000 psychological magnet can’t be ruled out.
Alternatively, recovery moves remain elusive unless the quote stays below the support-turned-resistance line near 0.6130.
Even so, a convergence of the 100-SMA and the stated channel’s top line, close to 0.6215-20 at the latest, will be important for the NZD/USD buyers to break before retaking control.
Above all, the Kiwi pair remains on the bear’s radar unless it successfully trades above the 200-SMA hurdle surrounding 0.6315.
NZD/USD: Four-hour 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.
