- NZD/USD retreats from intraday high as bears poke short-term key DMA support.
- Downbeat oscillators, descending resistance line from mid-June also favor bears.
- Buyers should remain cautious unless witnessing clear break of 0.6400.
NZD/USD fades the corrective pullback portrayed during the week-start move as it drops to 0.6235 during a mid-Asian session on Monday.
With this, the kiwi pair pokes the 20-DMA support as the MACD line teases bear cross while the RSI (14) also portrays the downbeat momentum.
Hence, the quote is likely to extend the latest weakness towards the downward sloping trend line from early May, near 0.6160. However, a daily closing below the 20-DMA support of 0.6229 appears necessary.
Should the quote remains weak past 0.6160, the 0.6100 round figure and the previous monthly low, also the yearly bottom, surrounding 0.6060, will be in focus.
On the flip side, a 1.5-month-old descending resistance line around 0.6340 limits the immediate upside of the NZD/USD pair.
Following that, the monthly high and mid-June top, close to 0.6352 and 0.6395 on that order, could challenge the NZD/USD buyers. Also acting as an upside filter is the 0.6400 threshold.
In a case where the prices rally beyond 0.6400, an upward trajectory towards June’s high near 0.6575 can’t be ruled out.
NZD/USD: Daily chart
Trend: Further downside expected