#NZDUSD @ 061085 remains pressured around six-week low marked on Monday, @nehcap view: Limited downside expected, Pivot Orderbook analysis

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• NZD/USD remains pressured around six-week low marked on Monday.
• Falling wedge formation teases buyers to take a risk but RSI hints at further downside.
• Convergence of the 100-SMA and 200-SMA appears a tough nut to crack for bulls.

The pair currently trades last at 0.61085.

The previous day high was 0.6195 while the previous day low was 0.6123. The daily 38.2% Fib levels comes at 0.6151, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6167, expected to provide resistance.

NZD/USD prints a three-day downtrend while posting mild losses around 0.6115 during Thursday’s Asian session. In doing so, the Kiwi pair stays near the lowest levels in 1.5 months, tested earlier in the week.

That said, the quote’s latest weakness could be linked to the U-turn from a three-week-old resistance line forming part of the falling wedge bullish chart pattern. The downside momentum also takes clues from the RSI (14).

Hence, the quote’s further weakness towards the weekly bottom of 0.6100 can’t be ruled out.

However, the stated wedge’s bottom and the yearly low marked in July, respectively around 0.6065 and 0.6060, could test the NZD/USD bears.

It should be noted that the RSI might have turned oversold around the yearly low, which in turn signals a corrective pullback, failing to portray the same could quickly drag the quote towards the 0.6000 psychological magnet.

On the contrary, an upside break of the 0.6145 hurdle will confirm the bullish chart pattern but the NZD/USD buyers will need validation from the 50-SMA level surrounding 0.6170.

Also acting as the key upside hurdle is the 100 and 200 SMA confluence, near 0.6260-55.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6111 at the time of writing. Pair opened at 0.6129 and is trading with a change of -0.29% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6269, 50 SMA 0.624, 100 SMA @ 0.6359 and 200 SMA @ 0.6573.

The previous day high was 0.6195 while the previous day low was 0.6123. The daily 38.2% Fib levels comes at 0.6151, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6167, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6103, 0.6077, 0.6031
• Pivot resistance is noted at 0.6175, 0.6221, 0.6247

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