NZDUSD has been sliding since August 12, when it hit resistance at 0.6470, with the price now getting closer to the 0.6060 support zone, marked by the low of July 14. In the bigger picture, the pair has been in a downtrend since February 2021, and thus, there may be decent chances for the pair to break below 0.6060 soon.
The daily oscillators are also supporting the notion of further declines. The RSI lies below 50 and points down, while the MACD runs below both its zero and trigger lines.
A clear and decisive dip below 0.6060 would confirm a forthcoming lower low on bigger timeframes and take the pair into territories last seen in May 2020. That could encourage the bears to dive towards the 0.5920 area, which acted as a temporary floor in April and May 2020, and if they are not willing to stop there, they may push towards the 0.5840 barrier, defined as a support by the low of April 3.
On the upside, the outlook could become brighter upon a break above the August 12 high, at 0.6470. A higher high will be confirmed on the weekly chart and the advance may continue towards the high of June 3, at 0.6575. If that obstacle is not able to stop the bulls either, then extensions towards 0.6715 may be triggered. That zone is marked by the inside swing lows of April 18 and 19.
To sum up, NZDUSD is in a broader downtrend, with the latest impulsive wave approaching the 0.6060 support. A break below that barrier will confirm a forthcoming lower low and thereby a trend continuation.
