NZD/USD technical analysis: On the back foot, falling channel intact

NZD/USD is trapped in a falling channel on the 4-hour chart.
A breakout looks likely as key indicators are reporting seller exhaustion.

Omkar Godbole FXStreet Contributor

NZD/USD is currently trading at session lows near 0.6430, having faced rejection at the upper edge of the falling channel in the late US trading hours.

On the daily chart, the relative strength index is reporting oversold conditions. Further, the moving average convergence divergence histogram is printing higher lows, a sign the bearish momentum has weakened.

So, the pair is likely to see a bearish channel breakout on the 4-hour chart in the next few hours.

A break above the upper edge of the falling channel, currently at 0.6447, would confirm the breakout and open the doors to levels above 0.65.

On the downside, acceptance below 0.6422 would expose the recent low of 0.6377.

4-hour chart

Daily chart

Trend: Bullish above 0.6447

Pivot points

1. R3 0.6496
2. R2 0.6478
3. R1 0.6463
PP 0.6445
1. S1 0.643
2. S2 0.6412
3. S3 0.6397

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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