NZDUSD plummeted to a more than two-year low of 0.6756 during early Thursday’s session and is set to complete the fourth red day in a row. The aggressive bearish rally started after the bounce off the 0.7060 resistance level at the beginning of June and the bears seem to have full control of this market.
In the 4-hour chart, the RSI is currently increasing its negative momentum in the oversold zone, while the MACD is moving lower in the negative territory, both hinting that the next move in prices could be on the downside rather than on the upside.
Further bearish movement could drive the price towards the next major support level of the 0.6670 barrier, taken from the low on May 2016.
In case of an upward attempt, NZDUSD would likely meet resistance at the 0.6780 barrier, which stands slightly above the current market price. A break above this level would ease the downside pressure and touch the 0.6820 resistance.
In the bigger picture, the price remains in a bearish mode and is ready to post the third consecutive negative month. Also, the pair is developing below the 20- and 40-simple moving averages (SMAs) in all timeframes from short- to long-term.
