- 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
|Today last price||0.6275|
|Today Daily Change||0.0017|
|Today Daily Change %||0.27|
|Today daily open||0.6258|
|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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