- The NZD/USD pair failed to capitalize on the overnight attempted positive move and met with some fresh supply on Wednesday, slipping below the 0.6400 handle to hit two-week lows in the last hour.
- Given that the pair has been drifting lower along a descending trend-channel formation on hourly charts, the set-up remains firmly in favour of short-term bearish traders amid a modest USD uptick.
This coupled with the fact that technical indicators on hourly charts have been holding in the negative territory further reinforce the near-term bearish bias, slightly oversold conditions on the daily chart warrant some caution before placing any aggressive bets.
Hence, any subsequent slide below the 0.6400 round figure mark seems more likely to find decent support near the lower end of the trend-channel – currently near the 0.6380-75 region – which coincides with the post-RBNZ multi-year lows touched earlier this month.
On the flip side, any attempted recovery might continue to confront fresh supply near the top end of the trend-channel – currently around the 0.6430 region – which if cleared might prompt a near-term short-covering move towards reclaiming the key 0.6500 psychological mark.
NZD/USD 4-hourly chart
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