NZD/USD technical analysis: Corrects from multi-week tops, bears eyeing a break below 0.6400 mark

The pair continued with its struggle to make it through the 0.6440-45 supply zone.
Sustained weakness below the 0.6400 handle needed to confirm further downfall.

Haresh Menghani FXStreet

Having repeated failed to clear the 0.6440-45 horizontal resistance, the NZD/USD pair witnessed a modest intraday pullback on Tuesday and finally broke down of its two-day-old trading range.

The intraday slide has now dragged the pair closer to an important confluence support near the 0.6400 handle - comprising of 100-hour SMA and 23.6% Fibo. level of the 0.6269-0.6445 up-move.

Meanwhile, technical indicators on hourly charts have again started gaining negative momentum/losing traction, suggesting that the near-term corrective bounce might have run out of the steam.

Moreover, oscillators on the daily chart are yet to catch up with the recent bounce and move back into the positive territory, warranting some caution before placing any fresh bullish bets.

A sustained break below the mentioned confluence support, the pair is likely to accelerate the slide towards 23.6% Fibo. level en-route the next support near the 0.6365-60 region.

On the flip side, the 0.6440-45 region might continue to act as an immediate strong resistance, which if cleared should pave the way for a move toward reclaiming the key 0.6500 psychological mark.

NZD/USD 1-hourly chart

NZD/USD

Overview
Today last price	0.6412
Today Daily Change	-0.0015
Today Daily Change %	-0.23
Today daily open	0.6427

Trends
Daily SMA20	0.6385
Daily SMA50	0.6532
Daily SMA100	0.656
Daily SMA200	0.668

Levels
Previous Daily High	0.6445
Previous Daily Low	0.6412
Previous Weekly High	0.6444
Previous Weekly Low	0.6269
Previous Monthly High	0.659
Previous Monthly Low	0.6283
Daily Fibonacci 38.2%	0.6432
Daily Fibonacci 61.8%	0.6425
Daily Pivot Point S1	0.6411
Daily Pivot Point S2	0.6395
Daily Pivot Point S3	0.6378
Daily Pivot Point R1	0.6444
Daily Pivot Point R2	0.6461
Daily Pivot Point R3	0.6477

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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