Struggles around multi-day bottom, 0.6700 tests rebound

  • NZD/USD remains sidelined around 14-month low, recently off intraday bottom.
  • RSI, MACD signals further downside towards 61.8% FE.
  • The year 2021 low, two-week-old resistance line guard recovery moves.

NZD/USD follows the global pre-Fed trading inaction while treading water around 0.6690 during Wednesday’s Asian session.

In doing so, the kiwi pair struggles to overcome the multi-day low printed during the last two days.

Given the bearish MACD signals and downbeat RSI, not oversold, the NZD/USD prices have further downside room, which in turn highlights the 61.8% Fibonacci Expansion (FE) of the pair’s moves between November 15, 2021, and January 13, 2022, near 0.6650.

It at all the NZD/USD bears refrain from stepping back past 0.6650, a descending trend line from September 2021 and November 2020 lows, respectively around 0.6615 and 0.6590, will gain the market’s attention.

Meanwhile, corrective pullback needs to cross the year 2021 bottom surrounding 0.6700 before heading towards a downward sloping resistance line from January 13, near 0.6735.

If the NZD/USD bulls cross the 0.6735 hurdle, tops marked since late November close to 0.6900 should flash on their radar.

NZD/USD: Daily chart

Trend: Bearish


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