NZD/USD Price Analysis: Kiwi bears eye further downside past 0.6150 key hurdle ahead of US CPI
- NZD/USD remains pressured after reversing from three-week high.
- Bearish Doji candlestick at multiple resistance joint keeps Kiwi bears hopeful.
- Fortnight-long rising support line, upbeat oscillators challenge downside moves as US inflation data looms.
NZD/USD holds lower ground near 0.6115-20 as the markets await the all-important US Consumer Price Index (CPI) data on early Tuesday. In doing so, the Kiwi pair keeps the previous day’s pullback from a three-week high while making rounds to the intraday low.
Also read: US Inflation Preview: Why the US Dollar is more likely to fall than rise, three scenarios
The Kiwi pair’s latest weakness justifies the Doji candlestick on the Daily chart formation. The bearish candlestick gains even more important as it marks the reversal in the NZD/USD price from the key 0.6150 resistance comprising the 200-DMA and previous support line stretched from early March.
It should be noted that a one-month-old falling trend line, currently around 0.6145, also added strength to the aforementioned key upside hurdle.
Hence, the quote is likely to remain on the bear’s radar unless crossing the 0.6150 hurdle.
Even if the NZD/USD buyers manage to cross the 0.6150 resistance, the mid-May swing low of around 0.6185 and the 0.6200 round figures can challenge the Kiwi bulls before giving them control.
With this, the quote is likely to remain pressured toward the 0.6100 threshold. However, an ascending support line from May 31, close to 0.6045 by the press time, could challenge the NZD/USD bears afterward.
In a case where the Kiwi pair remains bearish past 0.6045, the odds of witnessing its fall towards the yearly low marked in May around 0.5985 can’t be ruled out.
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.
