- NZD/USD takes offers to refresh intraday low, up for snapping five-week winning streak.
- Descending RSI line, not oversold, joins clear U-turn from short-term key horizontal area to favor sellers.
- Seven-day-old rising trend line, 200-HMA restricts immediate downside.
NZD/USD renews intraday low around 0.6835, down 0.45% on a day heading into Friday’s European session.
In doing so, the Kiwi pair stretches the U-turn from a one-week-long horizontal resistance area around 0.6875. Also favoring the bearish bias is the downward sloping RSI line, not oversold.
However, an upward sloping support line from March 02, around 0.6825, followed by the 200-HMA level of 0.6815, restricts short-term NZD/USD downside.
In a case where the quote drops below 0.6815, the 0.6800 threshold will be in focus.
Alternatively, recovery moves remain elusive below the previously said horizontal resistance near 0.6875.
Should the NZD/USD prices rally beyond 0.6875, the 0.6900 round figure and the monthly high of 0.6926 may entertain the bulls.
Overall, the kiwi pair is up for further declines but there prevails a limited downside space for the bears to cheer.
NZD/USD: Hourly chart
Trend: Further weakness expected