The New Zealand dollar continues southward amid a lack of demand for risk-sensitive currencies.
Sentiment turned bearish after price action failed to hold above this year’s low at 0.6530, invalidating a two-month-long recovery. The pair is heading to a 22-month low at 0.6390.
An oversold RSI may prompt short-term sellers to cover, driving up the price. However, 0.6590 is a fresh resistance, and there is a high chance of a dead cat bounce as trend followers could be waiting to sell into strength.
