NZD/USD Price Analysis: Further downside towards 0.6030 appears imminent
- NZD/USD remains on the back foot at the lowest levels in three weeks.
- Kiwi bears stay hopeful amid Clear break of monthly support line, bearish MACD signals.
- 50% Fibonacci retracement appears nearby target for sellers.
- Bulls need to refresh the monthly peak to retake control.
NZD/USD holds onto the previous day’s bearish bias despite posting mild intraday gains around 0.6080 heading into Thursday’s European session.
In doing so, the Kiwi pair justifies the downside break of an ascending support line from May 31, now immediate resistance around 0.6140. Also adding strength to the downside bias are the bearish MACD signals and the quote’s sustained trading below the 21-day Exponential Moving Average (EMA), near 0.6145 at the latest.
With this, the NZD/USD bears are well-set to poke the 50% Fibonacci retracement level of its October-February upside, near 0.6030.
However, the monthly low and the 61.8% Fibonacci retracement, respectively near 0.5985 and 0.5900, could challenge the pair sellers afterward. It’s worth noting that the 0.6000 psychological magnet also acts as a downside filter.
Meanwhile, NZD/USD recovery remains elusive unless the quote crosses the 0.6140-45 resistance confluence comprising the 21-day EMA and the monthly support-turned-resistance line.
In a case where NZD/USD manages to cross the 0.6145 hurdle, the 200-day EMA and the monthly high, at 0.6220 and 0.6250 in that order, will be in the spotlight.
NZD/USD: Daily chart
Trend: Further downside expected