NZD/USD Price Analysis: More downside looks imminent, 0.6000 eyed
- NZD/USD has printed a fresh two-year low at 0.6030.
- A downside break of the 0.6035-0.6063 demand zone has weakened the kiwi bulls further.
- The RSI (14) has shifted into the bearish range of 20.00-40.00, which indicates more weakness ahead.
The NZD/USD pair has started declining after attempting a pullback move to near 0.6038 in the early Tokyo session. On a broader note, a downside break of the consolidation formed in a narrow range of 0.6034-0.6053 has strengthened the greenback bulls. The asset has refreshed its two-year low at 0.6030.
A decisive slippage below the demand zone placed in a narrow range of 0.6035-0.6063 on a four-hour scale has turned into a supply area for the kiwi bulls ahead. Also, a build-up of selling pressure while testing the demand zone has bolstered the odds of further downside in the asset.
The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6077 and 0.6118 respectively are scaling lower sharply, which adds to the downside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals a continuation of downside momentum.
A break below the two-year low at 0.6030 will drag the asset towards the psychological support at 0.6000, followed by 20 April 2020 low at 0.5910.
Alternatively, an upside move above the demand zone placed in a 0.6035-0.6063 range will send the asset towards the round-level resistance and Friday’s high at 0.6100 and 0.6141 respectively.
NZD/USD four-hour 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.
