NZDUSD is struggling to gain strong positive momentum after its fast rebound from the 16-month low of 0.6524, stalling around the 20-day SMA, which overlaps with the 23.6% Fibonacci retracement level of the downward move from 0.7220 to 0.6524 at 0.6687 and within the 0.6700 psychological level.
The flattening mode in the RSI in the negative zone and the marginal positive move in the MACD below its zero level, justify the weak buying pressure keeping the short-term risk skewed to the downside.
Should selling forces strengthen, the 16-month low of 0.6524 will come under the spotlight. The low from August 2020 at 0.6490Â could initially turn support to keep the bias on the positive side. Moving lower, the 0.6380 barrier could come next, registered in June 2020.
Alternatively, a close above the 0.6700 round number will brighten the broader outlook, pushing the price towards the 40-day SMA at 0.6735. Beyond that, the rally may gear up to the 38.2% Fibonacci of 0.6790 ahead of the 50.0% Fibonacci of 0.6870.
In brief, NZDUSD is facing a bearish bias, where a drop below the 16-month low of 0.6524 is expected to enhance selling interest.
