NZD/USD Price Analysis: Eyes a break below 0.6250 amid a potential rounding top

NZD/USD extends correction from three-month tops above 0.6300
Dollar stages a tepid comeback amid mixed market sentiment.
Technical set up suggests a bearish break in the near-term.

Dhwani Mehta FXStreet

Having hit a new three-month high at 0.6308 in early Asia, NZD/USD extends the corrective slide below the 0.6300 level, as the USD bulls jump back on the bids amid a cautious trading environment.

The risk sentiment is souring in the last hour, mainly undermined the renewed US-China trade concerns and escalating civil unrest in the US, in lieu of the black man George Floyd’s death last week. Further, the lackluster performance across the commodities’ board fails to impress the NZD bulls.

From an intraday trading perspective, technically, the price has charted a potential round top formation on the 15-minutes sticks, with the bears now teasing a breakdown at 0.6273. The pattern will get validated below a break of the latter, opening floors for a test of the 0.6250 psychological level en route the pattern target at 0.6238.

Should the bulls manage to hold above the aforesaid horizontal trendline support at 0.6273, a bounce-back towards the multi-month tops cannot be ruled.

However, with the Relative Strength Index (RSI) trending below the midline and pointing southwards, the path of least resistance appears to the downside in the spot.

NZD/USD: 15-minutes chart

NZD/USD: Additional levels

NZD/USD

Overview
Today last price	0.6275
Today Daily Change	-0.0016
Today Daily Change %	-0.25
Today daily open	0.6292

Trends
Daily SMA20	0.6102
Daily SMA50	0.6041
Daily SMA100	0.6193
Daily SMA200	0.6315

Levels
Previous Daily High	0.63
Previous Daily Low	0.6186
Previous Weekly High	0.6241
Previous Weekly Low	0.6083
Previous Monthly High	0.6241
Previous Monthly Low	0.5921
Daily Fibonacci 38.2%	0.6256
Daily Fibonacci 61.8%	0.623
Daily Pivot Point S1	0.6219
Daily Pivot Point S2	0.6145
Daily Pivot Point S3	0.6105
Daily Pivot Point R1	0.6333
Daily Pivot Point R2	0.6373
Daily Pivot Point R3	0.6447

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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