NZD/USD Price Analysis: Refreshes 2.5-year low, vulnerable to test 0.5470
- NZD/USD takes offers to refresh multi-month low, prints four-day downtrend.
- Clear downside break of four-month-old descending trend line, 78.6% Fibonacci retracement favor sellers.
- Oversold RSI may trigger corrective bounce on the way to year 2020 bottom.
NZD/USD takes offers to refresh the 30-month low as it drops to 0.5810 during Thursday’s Asian session. In doing so, the Kiwi pair extends the previous day’s downside break of a four-month-old support line, as well as the 78.6% Fibonacci retracement of the 2020-21 upside.
With bearish MACD signals supporting the quote’s latest break of the previous key support, the prices are likely to decline towards the year 2020 low near 0.5470.
However, the oversold RSI (14) may offer intermediate halts during the south run.
In that case, the round figures near 0.5800 and 0.5500 may offer breathing spaces to the NZD/USD bears.
Alternatively, recovery remains elusive unless the quote stays below the 78.6% Fibonacci retracement level near the 0.5900 threshold.
Also likely to challenge the pair’s immediate rebound is the support-turned-resistance from May, around 0.5870.
Even if the NZD/USD prices rally beyond the 0.5900 mark, the 0.6000 psychological magnet and the monthly high near 0.6165 could challenge the quote’s further upside.
NZD/USD: Daily chart
Trend: Further 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.
