NZD/USD technical analysis: Struggles near multi-year lows, well below 0.6400 handle

The NZD/USD pair remained under some selling pressure for the second consecutive session and weakened farther below the 0.6400 handle, hitting the lowest level since January 2016.
Over the past two weeks or so, the pair has been trending lower along a short-term descending channel formation on hourly charts - clearly pointing to a well-established near-term bearish trend.

Haresh Menghani FXStreet

Technical indicators on hourly charts have been gaining negative momentum and further reinforce the near-term bearish outlook, albeit slightly oversold conditions on the daily chart warrant some caution before placing any aggressive bets.

Hence, any subsequent slide seems more likely to find decent support near the lower end of the trend-channel – currently near the 0.6360 region – leaving little room for any further depreciating move amid relatively thin US economic docket.

However, any attempted recovery runs the risk of fizzling out rather quickly near the top end of the trend-channel - currently around the 0.6415-20 region - which if cleared might prompt a short-covering move towards the key 0.6500 psychological mark.

NZD/USD 4-hourly chart

NZD/USD

Overview
Today last price	0.6378
Today Daily Change	-0.0026
Today Daily Change %	-0.41
Today daily open	0.6404

Trends
Daily SMA20	0.6504
Daily SMA50	0.6594
Daily SMA100	0.6609
Daily SMA200	0.6711

Levels
Previous Daily High	0.6424
Previous Daily Low	0.6395
Previous Weekly High	0.6475
Previous Weekly Low	0.6421
Previous Monthly High	0.6792
Previous Monthly Low	0.6543
Daily Fibonacci 38.2%	0.6406
Daily Fibonacci 61.8%	0.6413
Daily Pivot Point S1	0.6391
Daily Pivot Point S2	0.6379
Daily Pivot Point S3	0.6362
Daily Pivot Point R1	0.642
Daily Pivot Point R2	0.6437
Daily Pivot Point R3	0.6449

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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