NZD/USD Price Analysis: Recovery remains elusive below previous support near 0.6400
- NZD/USD picks up bids to probe two-day downtrend near six-week low.
- Support-turned-resistance line from early January guards immediate upside.
- 200-SMA appears a tough nut to crack for bulls, sellers can aim for 2023 bottom.
- Downbeat oscillators, sustained trading below the key technical levels favor sellers.
NZD/USD renews intraday high near 0.6290 as it bounces off a 1.5-month low marked the previous day during Thursday’s mid-Asian session.
In doing so, the Kiwi pair takes clues from the nearly oversold RSI (14) to portray a corrective bounce after declining in the last two consecutive days, not to forget mentioning that it posted the biggest daily loss in two weeks on Wednesday.
It should, however, be noted that the recovery moves need to cross the six-week-old previous support line, now resistance around 0.6400, to convince intraday buyers.
Even so, a fortnight-old descending trend line and the 200-bar Simple Moving Average (SMA), respectively near 0.6365 and 0.6385 in that order, could challenge the pair’s further upside.
In a case where the NZD/USD pair remains firmer past 0.6385, the 0.6400 could act as a validation point for the rally targeting the monthly peak surrounding 0.6540.
On the contrary, pullback moves should break the 0.6250 horizontal support to recall the NZD/USD bears.
Following that, the previous monthly low of 0.6190 and late November 2022 bottom around 0.6155 will gain the pair seller’s attention.
Overall, NZD/USD is likely to remain bearish despite the latest rebound.
NZD/USD: Four-hour chart
Trend: Bearish
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.
