NZD/USD Price Analysis: Further downside past 0.6100 appears impulsive
- NZD/USD remains pressured after reversing from one-week high, sidelined amid NZ holiday.
- Failure to extend corrective bounce off seven-month low keeps Kiwi bears hopeful.
- RSI, MACD conditions prod further downside but 10-DMA, previous support line restricts buyers from taking control.
NZD/USD fades bounce off the lowest levels in seven months, keeping the previous day’s retreat, as it holds lower grounds near 0.6060 amid early Monday morning in Asia. In doing so, the Kiwi pair portrays the quote’s inability to defend the previous week’s corrective bounce off the multi-day low amid failure to cross the key support-turned-resistance line and the 10-DMA.
Apart from the 10-DMA and the previous support line stretched from November 2022, respectively near 0.6060 and 0.6110, the absence of New Zealand (NZ) traders due to the holidays in Auckland also allow the Kiwi pair to continue extending the previous losses.
However, the nearly oversold RSI (14) line and the looming bull cross on the MACD allow the NZD/USD to pare previous losses in a case where the quote manages to stay firmer past the aforementioned key resistances, namely near 0.6060 and 0.6110.
In a case where the NZD/USD price remains firmer past 0.6110, the odds of witnessing a run-up towards the mid-May swing low, around 0.6185, can’t be ruled out.
Following that, the May 19 peak of around 0.6310 could entertain the Kiwi pair buyers before directing them to a four-month-old horizontal resistance area surrounding 0.6390.
On the contrary, pullback moves may initially aim for the 50% Fibonacci retracement level of its October 2022 to February 2023 upside, near 0.6025, before challenging the 0.6000 round figure.
It’s worth observing that the NZD/USD downside past the 0.6000 support needs to remain below the latest swing low of around 0.5985 to keep the bears on board.
NZD/USD: Daily chart
Trend: Further downside 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.
