NZD/USD technical analysis: Any subsequent recovery is likely to remain capped near 0.6300 handle


  • Oversold conditions helped bounce off a descending trend-channel support.
  • Set-up points to additional recovery, though seems likely to remain limited.

The NZD/USD pair gained some positive traction at the start of a new trading week and recovered a part of Friday's sharp intraday fall to fresh multi-year lows. Extremely oversold conditions on the 1-hourly chart helped the pair to rebound from a support marked by the lower end of a one-week-old descending trend-channel.
 
Meanwhile, oscillators on 4-hourly/daily charts maintained their bearish bias but remained on the verge of oversold territory, supporting prospects for further recovery. However, a goodish pickup in the USD demand and a fresh wave of global risk aversion trade might keep a lid on any runaway rally amid US-China trade pessimism.
 
Hence, any subsequent seems more likely to confront some heavy supply near the descending trend-channel resistance and remain capped around the 0.6300 handle.
 
On the flip side, the 0.6260-55 region now becomes immediate support to defend, which if broken now seems to pave the way for a further depreciating move in the near-term. Below the mentioned support, the pair is likely to accelerate the slide further towards August 2015 swing lows support near the 0.6220-15 region en-route the 0.6200 mark.

NZD/USD 1-hourly chart

fxsoriginal

NZD/USD

Overview
Today last price 0.6275
Today Daily Change 0.0017
Today Daily Change % 0.27
Today daily open 0.6258
 
Trends
Daily SMA20 0.6357
Daily SMA50 0.6477
Daily SMA100 0.6535
Daily SMA200 0.6657
 
Levels
Previous Daily High 0.6311
Previous Daily Low 0.6254
Previous Weekly High 0.6392
Previous Weekly Low 0.6254
Previous Monthly High 0.659
Previous Monthly Low 0.6283
Daily Fibonacci 38.2% 0.6276
Daily Fibonacci 61.8% 0.6289
Daily Pivot Point S1 0.6238
Daily Pivot Point S2 0.6217
Daily Pivot Point S3 0.6181
Daily Pivot Point R1 0.6295
Daily Pivot Point R2 0.6331
Daily Pivot Point R3 0.6352

 

 

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