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.

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