- NZD/USD struggles to defend the corrective bounce off two-week low.
- Key support line break, sustained trading below 200-SMA favor Kiwi pair sellers to aim for two-month-old rising trend line.
- Oversold RSI provides headwind to immediate declines but bearish MACD signals join technical breakdowns to favour bears.
NZD/USD remains pressured at the lowest level in two weeks around 0.6165 heading into Monday’s European session. In doing so, Kiwi pair sellers justify the oversold RSI while probing bears during a seven-day losing streak.
However, the quote’s sustained trading below the previously important key technical supports keeps the sellers hopeful as market players await the key US PMIs for intraday directions.
That said, a clear downside break of the previous support line from July 06 and the 200-SMA joins the bearish MACD signals to keep the NZD/USD seller hopeful.
Even if the NZD/USD price manages to cross the stated key moving average and the support-turned-resistance, respectively near 0.6200 and 0.6260, a one-week-old horizontal resistance area surrounding 0.6300-6310 will act as the last defense of the bears.
On the contrary, the 61.8% Fibonacci retracement of the May-July upside, near 0.6150, restricts the immediate downside of the NZD/USD pair ahead of a seven-week-old rising support line, close to the 0.6100 round figure at the latest.
Following that, the late June swing low near 0.6050 and the 0.6000 round figure will be in the spotlight.
Overall, the Kiwi bears are likely to keep the reins despite the latest corrective bounce.
NZD/USD: Four-hour chart
Trend: Further downside expected