- The NZD/USD pair remained under some selling pressure for the second consecutive session on Monday and has now moved on the verge of breaking below the 0.6400 handle.
- The pair has been trending lower along a short-term descending trend-channel formation over the past 1-1/2 week or so, which clearly points to a well-established bearish trend.
Meanwhile, negative technical indicators on hourly charts reinforce prospects for a further near-term depreciating move, albeit slightly oversold conditions on the daily chart warrant some caution before placing any aggressive bearish bets.
Hence, any follow-through weakness below the mentioned handle is more likely to find decent support near the lower end of the trend-channel – currently near the 0.6380 region – closer to the post-RBNZ multi-year lows touched earlier this month.
On the flip side, any attempted recovery might continue to confront fresh supply near the 0.6445-50 region (trend-channel resistance), which if cleared might prompt some near-term short-covering move back towards reclaiming the key 0.6500 psychological mark.
NZD/USD 1-hourly chart
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