NZD/USD Price Analysis: Further downside hinges on 0.6120 breakdown and US PMI

NZD/USD prints the biggest daily loss in two weeks, so far.
Convergence of 21-DMA, monthly ascending trend line restricts immediate downside.
Risk-off mood exerts downside pressure on Kiwi pair ahead of preliminary US S&P Global PMIs for June.

Anil Panchal FXStreet

NZD/USD takes offers to refresh intraday low around 0.6140 as it extends the previous day’s losses amid sour sentiment heading into Friday’s European session. In doing so, the Kiwi pair justifies the broad US Dollar strength ahead of the first readings of the US S&P Global PMIs for June.

Also read: NZD/USD drops to fresh daily low, around 0.6160 area amid renewed USD buying

Technically, the 14-day RSI returns to the normal territory surrounding the 50.00 round figure and suggests limited downside room, which in turn highlights a convergence of the 21-DMA and an upward-sloping trend line from May 31, close to 0.6120 at the latest.

That said, a 3.5-month-old horizontal support zone, around 0.6080, acts as an additional downside filter before directing the NZD/USD bears toward the yearly low of near 0.5985.

On the flip side, 38.2% and 50% Fibonacci retracement levels of the Kiwi pair’s February-May downturn, respectively near 0.6200 and 0.6265, restrict short-term advances of the quote.

Following that, a descending resistance line from early February and the 61.8% Fibonacci retracement, close to 0.6315 and 0.6330 in that order, will act as the final defense of the pair sellers.

NZD/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	0.6141
Today Daily Change	-0.0037
Today Daily Change %	-0.60%
Today daily open	0.6178

Trends
Daily SMA20	0.612
Daily SMA50	0.6175
Daily SMA100	0.6207
Daily SMA200	0.6155

Levels
Previous Daily High	0.6224
Previous Daily Low	0.6173
Previous Weekly High	0.625
Previous Weekly Low	0.6076
Previous Monthly High	0.6385
Previous Monthly Low	0.5985
Daily Fibonacci 38.2%	0.6192
Daily Fibonacci 61.8%	0.6205
Daily Pivot Point S1	0.6159
Daily Pivot Point S2	0.6141
Daily Pivot Point S3	0.6108
Daily Pivot Point R1	0.621
Daily Pivot Point R2	0.6243
Daily Pivot Point R3	0.6261

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.