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  • NZD/USD trims losses as the hourly chart indicator reports oversold conditions. 
  • A move above Friday’s high is needed to invalidate bearish pressures. 

NZD/USD is trading near 0.6028 at press time, having hit a low of 0.6008 an hour ago. 

The bounce may be further extended to the 200-hour average at 0.6042 as the hourly relative strength index has recovered from under-30 or oversold levels, signaling scope for a corrective rally.

Acceptance above the 200-hour average would open the doors to the psychological level of 0.61. 

Overall, the path of least resistance would remain to the downside as long as the spot holds below 0.6126, which is the high of the bearish marubozu candle created on Friday. 

That said, a bullish reversal would be confirmed once the pair prints a daily close above 0.6176 – the high of the Doji candle created on Thursday. 

Hourly chart

Trend: Bearish

Technical levels