- The NZD/USD pair met with some fresh supply on Tuesday and inched back closer to near three-week lows set in the previous session.
- The fact that the pair remained well below 50% Fibo. level of the 0.6487-0.6792 recent up-move support prospects for further weakness.
Moreover, the pair also seems to have found acceptance below a one-month-old ascending trend-line, which confirms a near-term bearish breakdown and sets the stage for an extension of the ongoing depreciating move.
Meanwhile, technical indicators on the daily chart have just started gaining negative traction and add credence to the bearish outlook, albeit oversold conditions on the 4-hourly chart held traders from placing any aggressive bets.
Having said that, a convincing break below the 0.6600 handle – coinciding with 61.8% Fibo. level, will reaffirm the bearish bias and accelerate the slide back towards challenging monthly lows – around the 0.6570-65 region.
On the flip side, the 0.6640-50 region (50% Fibo. level) now seems to act as an immediate resistance and is followed by the 0.6670 region – a confluence support breakpoint comprising of 100-day SMA and 38.2% Fibo. level.
NZD/USD daily chart
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