“¢ The NZD/USD pair finally broke down of its two-day-old consolidative trading range and tumbled to the 0.6500 neighbourhood during the mid-European session on Wednesday.
“¢ Sustained weakness below 23.6% Fibo. level of the 0.6481-0.6560 recent corrective bounce – coinciding with 200-hour EMA, was seen as a key trigger for intraday bearish traders.
Meanwhile, technical indicators on the 1-hourly chart are already pointing slightly oversold conditions and seemed to be the only factor that helped find some support ahead of the key 0.6500 psychological mark – 61.8% Fibo. level.
However, oscillators on 4-hourly/daily charts maintained their bearish bias and are still far from being in the oversold territory, suggesting that any attempted recovery might still be seen as a selling opportunity amid persistent US-China trade tensions.
A follow-through selling would expose yearly lows support near the 0.6485-80 region before the pair extends the bearish trajectory and eventually drops to test Oct. 2018 swing lows, around the 0.6425 region.
NZD/USD 1-hourly chart
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