NZDUSD reached a new 32-month low of 0.6482 earlier on Thursday after the aggressive selling interest that started after the slip below the 0.6600 psychological level. Currently, the pair is moving slightly higher, confirming the upside slope from the RSI indicator in the oversold zone. However, the MACD oscillator is strengthening its negative momentum below the trigger and zero lines in the 4-hour chart.
An extension to the downside, the price could drop towards the 0.6345 support level, identified by the low on January 2016. The only major support before this level would be found around the 0.6400 handle.
On the other side, if the pair strengthens and surpasses the 0.6500 key level, it could re-challenge the 0.6540 resistance. Further up, immediate obstacle could be at the 20-simple moving average (SMA) near 0.6564 at the time of writing. Even higher, the 0.6600 could attract greater attention, which coincides with the 40-SMA erasing yesterday’s losses.
Briefly, NZDUSD has been developing within a short-term descending movement since June 6 and posted a new lower low today.
