NZD/USD Price Analysis: Drops to 3-week lows, seems vulnerable to slide further

NZD/USD remained under some selling pressure for the second straight session on Wednesday.
The set-up favours bearish traders amid the overnight breakthrough 0.6000 confluence support.

Haresh Menghani FXStreet

The NZD/USD pair finally broke down of its daily consolidative trading range and dropped to three-week lows, around the 0.5960 region during the mid-European session on Thursday. The follow-through selling for the second consecutive session adds credence to the overnight bearish break below the key 0.60 psychological mark.

The mentioned level marked an important confluence support comprising of 50-day SMA and the lower end of a multi-week-old ascending trend-channel. The breakdown is further reinforced by the fact that technical indicators on the daily chart (RSI and MACD) have just started drifting into the negative territory.

Hence, an extension of the ongoing slide, further towards testing the 0.5910-0.5900 support zone, now looks a distinct possibility amid a sudden pickup in the USD demand. The USD caught some aggressive bids in the last hour after the US President Donald Trump said that having a strong dollar was a great thing.

On the flip side, confluence support breakpoint near the 0.6000 mark should now keep a lid on any attempted recovery. That said, a sustained strength above the said hurdle might prompt some near-term short-covering move and lift the pair further towards the 0.6070-75 intermediate resistance en-route the 0.6100 mark.

NZD/USD daily chart

Techical levels to watch

NZD/USD

Overview
Today last price	0.5965
Today Daily Change	-0.0026
Today Daily Change %	-0.43
Today daily open	0.5991

Trends
Daily SMA20	0.6044
Daily SMA50	0.602
Daily SMA100	0.6265
Daily SMA200	0.6335

Levels
Previous Daily High	0.6099
Previous Daily Low	0.5979
Previous Weekly High	0.6148
Previous Weekly Low	0.5994
Previous Monthly High	0.6176
Previous Monthly Low	0.5843
Daily Fibonacci 38.2%	0.6025
Daily Fibonacci 61.8%	0.6053
Daily Pivot Point S1	0.5947
Daily Pivot Point S2	0.5903
Daily Pivot Point S3	0.5827
Daily Pivot Point R1	0.6067
Daily Pivot Point R2	0.6143
Daily Pivot Point R3	0.6186

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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