NZD/USD technical analysis: 3-week old descending trend-channel lends some support, at least for now

The NZD/USD pair extended overnight rejection slide from the 0.6400 handle and remained under some selling pressure for the second consecutive session on Wednesday.
The pair dropped a four-year low level of 0.6326 in the last hour, albeit managed to find some support near the lower end of a three-week-old descending trend-channel.

Haresh Menghani FXStreet

Extremely oversold conditions on the daily chart, with RSI holding well below the 30 mark, seemed to be the only factor that helped limit deeper losses amid improving risk sentiment, which tends to benefit perceived riskier currencies – like the Kiwi.

However, the fact that the pair has already found acceptance below the 0.6365 horizontal support and has repeatedly faced rejection near the 0.6400 handle, the set-up remains tilted in favour of bearish traders and support prospects for further decline.

Hence, any attempted recovery move might confront some fresh supply near the mentioned support breakpoint, now turned resistance, above which bulls are likely to make a fresh attempt back towards conquering the 0.6400 round figure mark.

On the flip side, bearish traders are likely to wait for a sustained breakthrough the trend-channel support, below which the pair is likely to slide below the 0.6300 handle and head towards testing 2015 swing lows – around the 0.6230-20 region.

NZD/USD 4-hourly chart

NZD/USD

Overview
Today last price	0.6341
Today Daily Change	-0.0021
Today Daily Change %	-0.33
Today daily open	0.6362

Trends
Daily SMA20	0.6454
Daily SMA50	0.6583
Daily SMA100	0.6594
Daily SMA200	0.6702

Levels
Previous Daily High	0.64
Previous Daily Low	0.6357
Previous Weekly High	0.6443
Previous Weekly Low	0.6361
Previous Monthly High	0.6792
Previous Monthly Low	0.6543
Daily Fibonacci 38.2%	0.6373
Daily Fibonacci 61.8%	0.6384
Daily Pivot Point S1	0.6346
Daily Pivot Point S2	0.633
Daily Pivot Point S3	0.6303
Daily Pivot Point R1	0.6389
Daily Pivot Point R2	0.6416
Daily Pivot Point R3	0.6432

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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