NZDUSD challenges two-month-long bullish trend
NZDUSD slides beneath a two-month-old rising support line, extending late July’s downside break of the 200-EMA, as New Zealand released mixed second-quarter (Q2) employment data but the sentiment remains sour on US credit rating downgrade. With this, the Kiwi bears are all set to visit March’s low of around 0.6085. However, the late June swing low of around 0.6050 and the 0.6000 psychological magnet could test the pair sellers as the RSI (14) is below 50.0. If not, then May’s bottom of around 0.5985 will act as the last defense of buyers ahead of highlighting a convergence of the five-month-old descending support line and 61.8% Fibonacci retracement of October 2022 to March 2023 upside, near 0.5910.
Meanwhile, a daily closing beyond the 200-EMA level of around 0.6225 becomes necessary for the NZDUSD buyers to retake control, at least for the short term. Following that, the 23.6% Fibonacci retracement level of around 0.6300 will be in the spotlight. However, an area comprising multiple levels marked since early February, close to 0.6380-90, quickly followed by July’s high of around 0.6415, should probe the Kiwi pair’s further upside ahead of enabling it to target the yearly top marked in February around 0.6535-40.
