NZD/USD technical analysis: Remains vulnerable to retest multi-year lows

The NZD/USD pair remained under some selling pressure for the second consecutive session on Monday and has now moved on the verge of breaking below the 0.6400 handle.
The pair has been trending lower along a short-term descending trend-channel formation over the past 1-1/2 week or so, which clearly points to a well-established bearish trend.

Haresh Menghani FXStreet

Meanwhile, negative technical indicators on hourly charts reinforce prospects for a further near-term depreciating move, albeit slightly oversold conditions on the daily chart warrant some caution before placing any aggressive bearish bets.

Hence, any follow-through weakness below the mentioned handle is more likely to find decent support near the lower end of the trend-channel – currently near the 0.6380 region – closer to the post-RBNZ multi-year lows touched earlier this month.

On the flip side, any attempted recovery might continue to confront fresh supply near the 0.6445-50 region (trend-channel resistance), which if cleared might prompt some near-term short-covering move back towards reclaiming the key 0.6500 psychological mark.

NZD/USD 1-hourly chart

NZD/USD

Overview
Today last price	0.6414
Today Daily Change	-0.0014
Today Daily Change %	-0.22
Today daily open	0.6428

Trends
Daily SMA20	0.6552
Daily SMA50	0.6605
Daily SMA100	0.662
Daily SMA200	0.6717

Levels
Previous Daily High	0.6452
Previous Daily Low	0.6422
Previous Weekly High	0.6475
Previous Weekly Low	0.6421
Previous Monthly High	0.6792
Previous Monthly Low	0.6543
Daily Fibonacci 38.2%	0.6433
Daily Fibonacci 61.8%	0.644
Daily Pivot Point S1	0.6416
Daily Pivot Point S2	0.6404
Daily Pivot Point S3	0.6387
Daily Pivot Point R1	0.6446
Daily Pivot Point R2	0.6463
Daily Pivot Point R3	0.6475

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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