NZD/USD Technical Analysis: will likely hold support at 0.6717 on oversold conditions

• NZD/USD fell to 0.6736 – the lowest level since May 2016, the sell-off looks overdone as the relative strength index (RSI)on the hourly, 4-hour and daily chart has hit the overbought territory.
• So, the pair will likely defend support at 0.6717 – 61.8 percent Fibonacci retracement of the rally from August 2015 low to July 2015 high.

Hourly chart

Spot Rate: 0.6745

Daily High: 0.6763

Daily Low: 0.6736

Trend: Oversold, unable to rule out a corrective rally

Resistance

R1: 0.6763 (daily high resistance on hourly chart)

R2: 0.67 (zero figure)

R3: 0.6745 (downward sloping 50-hour moving average)

Support

S1: 0.6717 (61.8 percent Fibonacci retracement of the rally from August 2015 low to July 2015 high)

S2: 0.67 (psychological support)

S3: 0.6675 (May 2016 low)