NZD/USD Price Analysis: Ignores oversold RSI to aim for 0.6700
- NZD/USD pares intraday losses after downtick to refresh 13-month low.
- Sustained trading below 15-week-old horizontal line, monthly descending resistance keeps sellers hopeful.
- Downward sloping support line from March offers key support ahead of late 2020 lows.
NZD/USD licks its wounds around 0.6750, following a brief decline to refresh multi-day low during early Tuesday.
The oversold RSI conditions favor the latest corrective pullback. However, bearish MACD signals and the pair’s failures to cross the 0.6860-65 resistance confluence, including a horizontal line from late August and a descending trend line from November 09, challenge buyers.
Ahead of the key 0.6865 resistance, the 10-DMA level surrounding 0.6805 can probe the NZD/USD rebound. If at all the pair buyers manage to cross the 0.6865 hurdle, a run-up to the 0.6900 round figure and then to the mid-November swing high near 0.7080 can’t be ruled out.
On the contrary, the latest multi-month bottom of 0.6736 will precede a downward sloping trend line from March 25, around 0.6700, to challenge the NZD/USD sellers.
Should NZD/USD bears dominate past-0.6700, lows marked during November and October of 2020, respectively around 0.6590 and 0.6550 will be in focus.
NZD/USD: Daily chart
Trend: Further weakness expected