NZD/USD technical analysis: Struggles near multi-year lows, well below 0.6400 handle

• The NZD/USD pair remained under some selling pressure for the second consecutive session and weakened farther below the 0.6400 handle, hitting the lowest level since January 2016.
• Over the past two weeks or so, the pair has been trending lower along a short-term descending channel formation on hourly charts – clearly pointing to a well-established near-term bearish trend.

Technical indicators on hourly charts have been gaining negative momentum and further reinforce the near-term bearish outlook, albeit slightly oversold conditions on the daily chart warrant some caution before placing any aggressive bets.
 
Hence, any subsequent slide seems more likely to find decent support near the lower end of the trend-channel – currently near the 0.6360 region – leaving little room for any further depreciating move amid relatively thin US economic docket.
 
However, any attempted recovery runs the risk of fizzling out rather quickly near the top end of the trend-channel – currently around the 0.6415-20 region – which if cleared might prompt a short-covering move towards the key 0.6500 psychological mark.

NZD/USD 4-hourly chart