NZD/USD Price Analysis: Bears might target descending channel support, around 0.6500 mark

• NZD/USD extended the previous day’s sharp retracement slide from near two-week tops.
• The downward trajectory might now aim to test short-term descending channel support.

The NZD/USD pair added to the previous day’s sharp intraday fall from near two-week tops and remained depressed for the second consecutive session on Thursday.

Given that the pair on Wednesday struggled to find acceptance above a short-term descending trend-line resistance, the subsequent slide supports prospects for additional weakness. Bearish technical indicators on daily/4-hourly charts add credence to the negative outlook amid some follow-through USD buying interest.

However, RSI (14) on the 1-hourly is already flashing slightly oversold conditions and warrants some caution before placing fresh bearish bets. That said, the pair still seems vulnerable to extend the slide further towards challenging the trend-channel support, currently near the key 0.6500 psychological mark.

A convincing breakthrough will be seen as a fresh trigger for bearish traders and set the stage for a further near-term depreciating move.

On the flip side, any attempted recovery might now confront stiff resistance and remain capped near the 0.6565-70 horizontal zone. Above the mentioned barrier, a bout of short-covering could lift the pair back above the 0.6600 mark, en-route the trend-channel resistance, currently near the 0.6625 region.

NZD/USD 4-hourly chart

Technical levels to watch