NZDUSD plummeted to a fresh six-month low of 0.6824 earlier this morning, continuing the aggressive selling pressure that started after the pullback on the 0.7050 resistance level. Currently, the price is recovering from the low and trading slightly above its opening level but still below the 0.6850 resistance barrier.
Momentum indicators in the 4-hour chart though are currently supporting that the negative momentum is likely to strengthen in the short-term. Specifically, the RSI is picking up speed in the oversold zone below 30 level, though the MACD continues to distance itself below its red signal line. Moreover, the %K line of the stochastic oscillator posted a bullish cross with the %D line in the oversold area, indicating a possible upward correction.
Should the price decisively close below the 0.6820 support level, the bears could extend the downtrend towards the 0.6780 barrier, identified by the low on November 2017.
On the flip side, a run above 0.6850 could push the pair until the 0.6880 immediate resistance. A break above this level and the 20-simple moving average in the 4-hour chart could open the way towards the 0.6955 hurdle.
In the medium-term, the bearish outlook is still holding, with the moving averages all pointing downwards.
