NZD/USD Price Analysis: Oversold RSI backs corrective pullback to previous support

NZD/USD bears take a breather at 15-month low during the biggest weekly fall since November.
Previous support line from late September guards recovery moves.
Oversold RSI conditions challenge further selling but rebound remains elusive below 0.6700.
Bears remain directed towards 0.6480 support zone with September 2020 lows likely testing immediate downside.

Anil Panchal FXStreet

NZD/USD struggles to regain 0.6600 while bouncing off October 2020 levels during early Friday morning in Europe.

The kiwi pair dropped during the last six days to form the multi-day bottom around 0.6570. However, oversold RSI conditions triggered the quote’s corrective pullback.

Even so, the intraday buyers need to cross the descending trend line resistance, previous support near 0.6610, to justify the upside momentum.

Following that, a convergence of the 10-DMA and a descending trend line from January 13, near 0.6700, becomes crucial for NZD/USD buyers to watch.

Alternatively, fresh declines will wait for the downside break of 0.6570. The same gains support from the bearish MACD signals.

In that case, September 2020 low near 0.6510 may act as immediate support ahead of directing the NZD/USD bears to the troughs marked in August 2020 and June 2019 around 0.6480.

Overall, NZD/USD prices remain vulnerable to the further downside but the RSI conditions triggered the latest bounce.

NZD/USD: Daily chart

Trend: Bearish

Additional impotant levels

Overview
Today last price	0.6588
Today Daily Change	0.0012
Today Daily Change %	0.18%
Today daily open	0.6576

Trends
Daily SMA20	0.6763
Daily SMA50	0.6794
Daily SMA100	0.6925
Daily SMA200	0.7004

Levels
Previous Daily High	0.6661
Previous Daily Low	0.657
Previous Weekly High	0.6827
Previous Weekly Low	0.6707
Previous Monthly High	0.6891
Previous Monthly Low	0.6701
Daily Fibonacci 38.2%	0.6605
Daily Fibonacci 61.8%	0.6626
Daily Pivot Point S1	0.6544
Daily Pivot Point S2	0.6511
Daily Pivot Point S3	0.6453
Daily Pivot Point R1	0.6635
Daily Pivot Point R2	0.6693
Daily Pivot Point R3	0.6726

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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