NZD/USD Price Analysis: Kiwi bulls to defend 61.8% Fibo retracement at 0.6230
- NZD/USD sees more downside to near 0.6234.
- The 10- and 20-EMAs are scaling lower, which signals more weakness ahead.
- The RSI (14) has tumbled below 30.00 for the very first time in the last two years.
The NZD/USD pair has witnessed a minor rebound around 0.6284 after displaying a firmer south-side move. The kiwi bulls may get stronger on violating the opening price at 0.6322 for today’s session but will remain weaker on a broader note. This week, the asset extended its losses after slipping below the previous week’s low at 0.6394.
On a weekly scale, the asset has witnessed a sheer downside move after tumbling below the cushion of January’s low at 0.6529. The major is marching towards the 61.8% Fibonacci retracement (plotted from 20 March 2020 low at 0.5470 to 26 February 2021 high at 0.7466) at 0.6234.
The declining 10- and 20-period Exponential Moving Averages (EMAs) at 0.6619 and 0.6707, respectively, add to the downside filters.
It is worth noting that the Relative Strength Index (RSI) (14) has tumbled below 30.00 for the very first time in the last two years on a weekly scale, which signals an oversold situation on the counter.
Kiwi bulls may find a pullback after the asset touches the 61.8% Fibo retracement at 0.6234. This will drive the asset higher towards the round level resistance at 0.6400, followed by February 18 low at 0.6593.
On the flip side, the greenback bulls will extend their losses if the asset plunges below the round level support of 0.6200. This will drag the major towards a 29 May 2020 low and psychological support at 0.6083 and 0.6000, respectively.
NZD/USD weekly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
