NZDUSD is recouping some losses that were posted earlier in the day after it plummeted to a fresh 13-month trough of 0.6725. The bearish view started following the pullback from the 0.7215 resistance level in the short-term, and the simple moving averages (SMAs) are heading south as well.
According to technical indicators, the RSI is pointing marginally up around the oversold zone, while the MACD is flattening above its trigger line in the negative region. The red Tenkan-sen line is moving below the blue Kijun-sen line, suggesting a negative bias.
If the price dives below the intraday trough, the bearish forces may take the market until the 0.6585 support level, taken from the low in November 2020, ahead of deeper declines to 0.6510.
On the flip side, a successful climb above the 0.6800 psychological mark may send the pair towards the next immediate resistance of 0.6857. Even higher, the 40-day SMA, which overlaps with the 0.6980 barrier, could halt the bullish move.
All in all, NZDUSD has been in a descending movement since October 28; however, any jumps above the 200-day SMA at 0.7047 may shift the outlook to bullish.
