NZDUSD has been on the sidelines for most of the week as the two-month low of 0.6450 and the 0.6500 handle seem to be a real struggle for traders.
Technically, the price could lose some ground in the short-term as the RSI is changing direction to the downside and towards its 30 mark, while the MACD oscillator is approaching its trigger line to create a bearish cross below the zero line.
In the last 4-hour session, the price dropped below the 20-day simple moving average (SMA), approaching the 2-month low of 0.6450. Exiting from the tight range the 0.6435 support is coming into the spotlight before the 0.6400 round number, taken from the low on November 2018. More losses could take the price to the next barrier of 0.6380.
Alternatively, if the price rebounds on the multi-month low of 0.6450, it could post some gains until the 40-period SMA at 0.6485, slightly ahead of the lower surface of the Ichimoku cloud. Above that, the price could flirt with the 0.6500 handle and the 23.6% Fibonacci retracement level of the down leg from 0.6754 – 0.6450 at 0.6520.
Concluding, NZDUSD is in a negative mode over the last month as it is posting lower lows and lower highs in the 4-hour chart.
