NZD/USD Price Analysis: Stays defensive above 0.6300, double tops tease bears
- NZD/USD holds lower ground after reversing from six-month high.
- Bearish chart formation, impending bear cross on the MACD challenge recovery moves.
- 200-DMA, monthly support line restrict immediate downside, bulls need validation from 0.6480.
NZD/USD retreats from an intraday high of 0.6323 as it fades the corrective bounce after a two-day downtrend amid Tuesday’s Asian session.
Given the looming bearish cross on the MACD indicator, coupled with the last week’s failure to stay beyond the August month’s high near 0.6470, the Kiwi pair is likely to remain bearish.
That said, a one-month-old ascending support line near 0.6280 and the 50% Fibonacci retracement level of the pair’s April-October downside, close to 0.6275, could restrict short-term declines of the NZD/USD pair.
However, the 200-DMA and an upward-sloping trend line from October’s low, respectively near 0.6225 and 0.6080, appear tough nuts to crack for the NZD/USD bears afterward.
On the flip side, the 61.8% Fibonacci retracement level of 0.6452, also known as the golden ratio, challenges the intraday pair buyers ahead of the double tops marked near 0.6470-75.
It’s worth noting that highs marked in May and June, around 0.6570-75, act as the last defense of the NZD/USD bears.
Overall, NZD/USD remains on the bear’s radar despite the recent hesitance to break the 0.6300 threshold.
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.
