- Bulls failed to capitalize on last week’s late positive move.
- Fall below 200-hour SMA was seen as a trigger for bears.
The pair failed to capitalize on last week’s late positive move and witnessed some fresh selling on Monday near a resistance marked by 61.8% Fibonacci retracement level of the 0.6452-0.6204 recent downfall.
A subsequent slide below 200-hour SMA and 38.2% Fibo. level was seen as a key trigger for bearish traders and has now dragged the pair back towards last week’s swing lows support near the 0.6280-75 region.
Given that oscillators on the 4-hourly charts have been drifting lower in the bearish territory and just started gaining negative momentum on the daily chart, the intraday bias seems tilted in favour of bearish traders.
However, technical indicators on the 1-hourly chart are already flashing slightly oversold conditions and might turn out to be the only factor that might help limit further losses, at least for the time being.
Meanwhile, a decisive breakthrough the mentioned support will confirm the bearish outlook and set the stage for a further near-term depreciating move back towards challenging the 0.6200 round-figure mark.
On the flip side, the 0.6300 handle (200-hour SMA) now seems to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards clearing the 0.6350-55 supply zone – tested on Friday.
NZD/USD 1-hourly chart
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