- The pair continued with its struggle to make it through the 0.6440-45 supply zone.
- Sustained weakness below the 0.6400 handle needed to confirm further downfall.
The NZD/USD pair continued with its struggle to make it through the 0.6440-45 horizontal resistance and traded with a mild negative bias through the early North-American session on Wednesday.
The intraday downtick has now dragged the pair below 100-hour SMA, though bulls have managed to defend the 0.6400 handle – support marked by 23.6% Fibo. level of the 0.6269-0.6445 up-move.
Meanwhile, technical indicators on hourly charts have been drifting lower in the bearish territory/losing traction, suggesting that the recent corrective bounce might have already run out of the steam.
Moreover, oscillators on the daily chart are yet to catch up with the recent bounce and struggled to gain any meaningful positive momentum, supporting prospects for some near-term weakness.
Hence, a sustained break below the mentioned handle seems more likely to prompt some aggressive technical selling and accelerate the slide towards 23.6% Fibo. level en-route the 0.6365-60 support.
NZD/USD 1-hourly chart