NZD/USD technical analysis: Nosedives to fresh multi-year lows, around mid-0.6200s

The pair remained under some heavy selling pressure within a short-term descending channel.
Oscillators are already flashing oversold conditions and warrant some near-term consolidation.

Haresh Menghani FXStreet

The NZD/USD pair remained under some heavy selling pressure for the third consecutive session on Friday - also marking its seventh of downfall in the previous eight - and tumbled to fresh multi-year lows in the last hour.

The pair has been drifting lower along a one-week-old descending trend-channel formation on hourly charts, clearly indicating a well-established near-term bearish trend amid a goodish intraday pickup in the USD demand.

Currently flirting with the lower end of the mentioned trend-channel, extremely oversold conditions on hourly charts might hold back investors from placing fresh bearish bets and warrant some near-term consolidation.

Hence, any subsequent fall seems more likely to find some support near August 2015 swing lows, around the 0.6220-15 region, below which the pair might turn vulnerable to head towards testing sub-0.6100 levels in the near-term.

On the flip side, any meaningful recovery attempt now seems to confront some fresh supply near the 0.6300 round-figure mark and should cap any further up-move near the trend-channel resistance, around the 0.6315 region.

NZD/USD 1-hourly chart

NZD/USD

Overview
Today last price	0.626
Today Daily Change	-0.0041
Today Daily Change %	-0.65
Today daily open	0.6301

Trends
Daily SMA20	0.6365
Daily SMA50	0.6486
Daily SMA100	0.6539
Daily SMA200	0.666

Levels
Previous Daily High	0.6334
Previous Daily Low	0.6298
Previous Weekly High	0.6452
Previous Weekly Low	0.6372
Previous Monthly High	0.659
Previous Monthly Low	0.6283
Daily Fibonacci 38.2%	0.6312
Daily Fibonacci 61.8%	0.632
Daily Pivot Point S1	0.6288
Daily Pivot Point S2	0.6275
Daily Pivot Point S3	0.6252
Daily Pivot Point R1	0.6324
Daily Pivot Point R2	0.6347
Daily Pivot Point R3	0.636

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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