NZDUSD has come under renewed selling pressure falling back below the 0.6630 price level but remaining above the lower Bollinger band. Meanwhile, the 20-simple moving average (SMA) is ready to record a bearish crossover with the 40-SMA in the 4-hour chart, suggesting more losses. The RSI indicator dropped below the 50 level with strong momentum, while the MACD oscillator remains above zero line with weak movement.
If the price slip below the 0.6630 support level, it is expected to lose more ground. Initial support to declines could come from the zone around the 0.6600 handle. Steeper downside movement would send prices until the 0.6540 barrier.
On the other side, upside moves are likely to find resistance at the 20- and 40-SMAs around 0.6650 before touching the upper Bollinger Band at 0.6670. It is worth mentioning that the Bollinger Band is squeezing over the last session and is approaching the current market prices. A run above the upper Bollinger would push the pair towards the 0.6700 psychological level.
In the medium-term, NZDUSD has been trading bearish in the past five months after the pullback on the 0.7390 hurdle, but if the price jumps above 0.6725, this could shift the outlook to more neutral to bullish one.
If the price slip below the 0.6630 support level, it is expected to lose more ground. Initial support to declines could come from the zone around the 0.6600 handle. Steeper downside movement would send prices until the 0.6540 barrier.
