NZD/USD Price Analysis: Eyes further volatility past 0.6400 on megaphone formation
- NZD/USD picks up bids to consolidate biggest daily losses in 14 months.
- Megaphone hints at continuation of bearish trend in a wider range, MACD also teases sellers.
- 100-SMA adds to the upside filters, 0.6385-80 appears a tough nut to crack for sellers.
NZD/USD renews intraday high around 0.6445 while paring the previous day’s heavy losses during Friday’s Asian session.
The kiwi pair dropped to the fresh low since 2020 while posting the biggest daily fall since March 2021. The latest rebound, however, portrays a megaphone chart pattern that suggests further widening of the bearish moves and increased volatility.
That said, NZD/USD prices currently aim for the 0.6500 threshold before challenging the upper line of the aforementioned chart pattern, near 0.6575.
Should the pair buyers manage to cross the 0.6575 hurdle, the 100-SMA level surrounding 0.6615 will act as the last defense for the bears.
On the flip side, a convergence of the megaphone’s lower line and multiple lows marked during late June 2020, around 0.6385-80, becomes strong support to watch during the quote’s downside.
In a case where NZD/USD drops below 0.6380, it becomes vulnerable to testing the late 2019 bottom around 0.6200.
NZD/USD: Four-hour chart
Trend: Further weakness 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.
