NZD/USD Price Analysis: Prints mild losses below 0.6245-50 key resistance
- NZD/USD fades bounce off three-month low, holds lower ground of late.
- Bearish MACD signals join failure to cross the convergence of 100-SMA, one-month-old resistance line to lure sellers.
- Fortnight-long horizontal support area restricts immediate downside ahead of February’s low.
NZD/USD remains depressed around 0.6210 as it pares the previous week’s gains, the first in five, heading into Monday’s European session.
In doing so, the Kiwi pair portrays the bear’s dominance between the key trading area between the 0.6245-50 resistance confluence and 0.6200-6190 support zone.
That said, the bearish MACD signals join the pair’s failure to cross the 0.6245-50 resistance confluence, including the 100-bar Simple Moving Average (SMA) and a one-month-long descending resistance line, to keep sellers hopeful.
However, multiple levels marked since late February could challenge the NZD/USD pair’s immediate downside around 0.6200-6190.
Should the quote remains weak past 0.6190, the odds of witnessing a quick drop to the previous monthly low of 0.6131 can’t be ruled out. Though, July 2022 low of 0.6060 and the 0.6000 psychological magnet could restrict the pair’s further downside.
Alternatively, a successful break of the 0.6250 hurdle becomes necessary to direct the NZD/USD buyers toward the 200-SMA hurdle of 0.6335.
Following that, the mid-February high surrounding 0.6390 and the 0.6400 round figure could become important to watch for the bulls.
Overall, NZD/USD is likely to grind lower and advocates further volatility.
NZD/USD: Four-hour chart
Trend: Limited 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.
