NZD/USD Price Analysis: Oversold RSI prods Kiwi bears around mid-0.6000s ahead of China PMI


  • NZD/USD clings to mild losses at the lowest levels in three weeks.
  • Oversold RSI suggests limited downside room, highlights five-week-old horizontal support.
  • 0.6155 appears short-term key hurdle but Kiwi bulls need to remain cautious below 0.6310.

NZD/USD traders lick their wounds at the lowest levels in three weeks while making rounds to the 0.6050-60 area amid Friday’s mid-Asian session. In doing so, the Kiwi pair drops for the third consecutive day but lacks downside momentum of late.

That said, the oversold RSI (14) line prods the NZD/USD bears of late. Also challenging the sellers is the receding bearish bias of the MACD signals.

It should be noted, however, that the Kiwi pair’s sustained downside break of the monthly support line, 100-SMA and a two-week-old bearish channel keeps the sellers hopeful.

Hence, a horizontal area comprising multiple levels marked since late May, around 0.6030, can allow the NZD/USD prices to consolidate before marking the fresh leg towards the south.

In that case, the 0.6000 round figure and the yearly low marked in May around 0.5985 will be in the spotlight.

On the contrary, the bottom line of the fortnight-old bearish channel, around the 0.6100 threshold, restricts the immediate recovery of the NZD/USD pair.

Following that, a convergence of the 100-SMA and the previous support line from May 31, close to 0.6155-60, could challenge the Kiwi pair buyers.

Even if the NZD/USD bulls dominate past 0.6160, the top line of the stated channel and the late May swing high, respectively near 0.6185 and 0.6310 will act as extra checks for the buyers.

NZD/USD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price 0.606
Today Daily Change -0.0010
Today Daily Change % -0.16
Today daily open 0.607
 
Trends
Daily SMA20 0.6138
Daily SMA50 0.6167
Daily SMA100 0.6197
Daily SMA200 0.616
 
Levels
Previous Daily High 0.6112
Previous Daily Low 0.605
Previous Weekly High 0.6237
Previous Weekly Low 0.6116
Previous Monthly High 0.6385
Previous Monthly Low 0.5985
Daily Fibonacci 38.2% 0.6074
Daily Fibonacci 61.8% 0.6088
Daily Pivot Point S1 0.6043
Daily Pivot Point S2 0.6015
Daily Pivot Point S3 0.5981
Daily Pivot Point R1 0.6105
Daily Pivot Point R2 0.6139
Daily Pivot Point R3 0.6167

 

 

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