- NZD/USD has bounced more than 20 pips to key hurdle at 0.6535.
- A rejection there could fuel a deeper decline, as the hourly chart indicators are biased bearish.
NZD/USD is currently chipping away at the resistance at 0.6535 – the lower end of the hourly chart symmetrical triangle, which was breached during the overnight trade.
While the pair has bounced up from the session low of 0.6507, the immediate bias remains neutral, as the resistance at 0.6561 is intact. A break above that level is needed to invalidate the lower highs setup on the hourly chart and open the doors to 0.66.
However, if the former support-turned-resistance reverses the bounce from 0.6507-0.6535, the symmetrical triangle would gain credence, possibly yielding a deeper decline to 0.6468.
Both the 50- and 100-hour simple moving averages are no longer trending upwards, a sign of buyer exhaustion. In addition, the hourly chart relative strength index is reporting bearish conditions with a below-50 print. The bearish case, therefore, looks likely to happen over the next few hours.
Hourly chart
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Trend: Bearish
Technical levels
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