NZD/USD Price Analysis: Slides below 0.6100 inside bearish channel
- NZD/USD drops towards the seven-week low marked the previous day.
- Three-day-old bearish channel, descending RSI line keep sellers hopeful.
- Sellers have a limited downside room, bulls need validation from 200-HMA.
NZD/USD fades the early Asian session rebound as it retreats to 0.6070 on Friday. In doing so, the Kiwi pair portrays a pullback from the 20-HMA while staying inside a short-term bearish trend channel.
Given the receding bullish bias of the MACD and the RSI retreat supporting the quote’s latest weakness, the NZD/USD prices are likely to remain weak.
However, the stated channel’s support line, around 0.6045, could test the bears before directing them to the yearly low marked in July, around 0.6025.
It should be noted that the 0.6000 psychological magnet could act as a tough nut to crack for the NZD/USD bears.
Alternatively, the 20-HMA and the stated channel’s upper line, respectively near 0.6085 and 0.6095, quickly followed by the 0.6100 round figure comprising multiple lows marked during late August, could restrict short-term NZD/USD recovery.
Even if the pair rises past 0.6100, it can aim for the 200-HMA hurdle, around 0.6160 by the press time.
Overall, NZD/USD remains on the bear’s radar while staying on its way to 0.6000.
NZD/USD: Hourly 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.
