- NZD/USD remains depressed after reversing from six-week high.
- Bulls are safe above 0.5790 but oscillators and failure to cross 50-DMA tease sellers.
- Multiple hurdles stand ready to challenge buyers past 50-DMA, bears may aim for yearly low on breaking 0.5790.
NZD/USD readies the move to defy the three-week-old ascending trend channel by holding lower ground near 0.5825 amid Thursday’s Asian session.
That said, the Kiwi pair jumped to the highest since September 20 during the initial announcements from the US Federal Open Market Committee (FOMC) meeting.
However, the post-Fed slump portrays the quote’s inability to cross the 50-DMA hurdle. The same joins recently easing bullish signals from the MACD and a sluggish RSI (14) line to keep sellers hopeful of breaking the stated channel’s support, around 0.5790 by the press time.
Following that, a slump to the 23.6% Fibonacci retracement level of the NZD/USD pair’s August-October downturn, around 0.5740, will precede multiple supports around 0.5580-70 to challenge the bears on their way to the yearly low of 0.5511.
Alternatively, an upside break of the 50-DMA hurdle surrounding 0.5840 will find it difficult to cross the 38.2% Fibonacci retracement level and the aforementioned channel’s upper line, close to 0.5880 and 0.5945 in that order.
Even if the NZD/USD bulls manage to cross the 0.5945 hurdle, the 50% Fibonacci retracement near 0.5995 and the 0.6000 psychological magnet will be crucial for them to conquer before rising further.
NZD/USD: Daily chart
Trend: Further downside expected