The NZD/USD Pair Is Likely To Decline Further
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- NZD/USD fades bounce off the lowest levels since late November 2022, grinds lower of late.
- 50-EMA pierces 200-EMA from above to portray death cross suggesting further downside of the Kiwi pair.
- Oversold RSI conditions, lows marked during mid-November challenge bears.
- Buyers need a successful break of 0.6265 to retake control.
NZD/USD extends the previous day’s pullback from mid-0.6100s as bears flirt with the 0.6100 threshold during early Friday. In doing so, the Kiwi pair justifies Thursday’s failure to cross the late February swing low.
That said, the 50-bar Exponential Moving Average (EMA) pierces the 200-EMA from above and portrays the death cross, which in turn suggests further downside of the NZD/USD.
However, the RSI (14) line is oversold and hence, lows marked during mid-November 2022, around 0.6060, may act as strong support for the NZD/USD bears to watch.
In a case where the Kiwi pair refrains from bouncing off 0.6060 support, it becomes vulnerable to drop towards the early November 2022 peak surrounding the 0.6000 psychological magnet.
Alternatively, a downward-sloping resistance line from February 14, close to the 0.6200 round figure, seems to challenge the NZD/USD pair’s immediate recovery.
It’s worth noting, though, that a convergence of the 50-EMA and 200-EMA, around 0.6265, appears a tough nut to crack for the NZD/USD bulls, a break of which could trigger a run-up targeting the mid-February swing high near 0.6390.
Overall, NZD/USD is likely to decline further but the room towards the south appears limited.
NZD/USD: Daily chart
Trend: Further downside expected
