- NZDUSD extends bearish trend to a four-month low
- Resistance near 0.6000; support seen at 0.5980
Following two weeks of losses, NZDUSD is now aiming to find a firm footing around 0.6000, having dropped to a four-month low of 0.5984.
The latest bearish wave has re-activated the downtrend from December’s peak of 0.6368. Overcoming the 61.8% Fibonacci retracement of the October-December upleg at 0.6000 may prove difficult, leading to a decline below the support trendline at 0.5980 and a subsequent search for support around the 0.5900 constraining zone. Even lower, the decline could take a breather near the 0.5858 barrier.
From a technical point of view, a rebound is still possible in the coming sessions, as both the RSI and stochastic oscillators indicate oversold conditions.
Should buying interest resurface, traders could push for a close above the SMAs, currently within the 0.6070-0.6100, region before they target the tentative resistance trendline at 0.6160. A break higher could shift the spotlight to the descending constraining trendline from January at 0.6220.
In brief, NZDUSD has resumed its short-term downtrend, with sellers waiting for a move below 0.5980 to gain fresh momentum.
