NZD/USD Price Analysis: Marks another pullback from 50-DMA as sellers attack 0.6200
- NZD/USD takes offers to refresh intraday low, pares weekly gains.
- Seven-week-old broad support area appears major challenge for bears.
- Bearish MACD signals, downbeat RSI strengthens downside bias.
NZD/USD holds lower ground near the 0.6200 threshold as it again reverses from the 50-DMA hurdle during Friday’s Asian session. Also keeping the Kiwi pair bears hopeful are the downbeat MACD signals and softer RSI (14), not oversold.
With this, the quote is likely to retest a horizontal support zone established since early July, between 0.6130 and 0.6150.
In a case where the NZD/USD bears keep reins past 0.6130, the 0.6100 round figure may act as an intermediate halt before directing them to the yearly low near 0.6060.
It should be noted that the Kiwi pair’s weakness past 0.6060 could make it vulnerable to testing the 0.6000 psychological magnet, as well as the 61.8% Fibonacci Expansion (FE) of April-August moves, at 0.5895 by the press time.
Meanwhile, a daily closing beyond the 50-DMA resistance level surrounding 0.6235 could quickly propel the NZD/USD prices towards the 0.6300 hurdle.
However, the bullish bias remains doubtful until the quote trades below a four-month-old descending resistance line, close to 0.6445 at the latest.
NZD/USD: Daily chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
