#NZDUSD @ 0.60234 fades bounce off three-month-old descending support line, stays pressured at the lowest levels since November 2022., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• NZD/USD fades bounce off three-month-old descending support line, stays pressured at the lowest levels since November 2022.
• Oversold RSI backs corrective bounce off the key support but bearish MACD signals turn down recovery hopes.
• Convergence of 200-DMA, 38.2% Fibonacci retracement restricts short-term upside.
• US ADP Employment Change, multiple PMIs eyed for clear directions.

The pair currently trades last at 0.60234.

The previous day high was 0.6067 while the previous day low was 0.6025. The daily 38.2% Fib levels comes at 0.6041, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6051, expected to provide resistance.

NZD/USD fades bounce off a three-month-old key support line while dropping back to 0.6015 during early Thursday in Asia.

In doing so, the Kiwi pair justifies the bearish MACD signals to extend the previous week’s downside break of the 200-DMA while keeping the bears in the driver’s seat at the lowest levels in seven months. It’s worth noting, however, that the RSI (14) line is almost oversold and hence can offer intermediate bounces during the south-run.

With this, the NZD/USD price may again test the aforementioned support line stretched from March, close to 0.5980 by the press time. However, the quote’s further downside appears elusive.

In a case where the Kiwi pair breaks the stated support line, it can quickly drop to the 61.8% Fibonacci retracement level of October 2022 to February 2023 upside, near 0.5900.

On the other hand, recovery remains unimpressive below an upward-sloping previous support line from mid-November 2022, surrounding 0.6100.

Even so, the NZD/USD pair buyers remain off the table unless witnessing a daily closing beyond a convergence of the 200-DMA and 38.2% Fibonacci retracement, near 0.6150.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6019 at the time of writing. Pair opened at 0.6044 and is trading with a change of -0.41% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6213, 50 SMA 0.6214, 100 SMA @ 0.626 and 200 SMA @ 0.6152.

The previous day high was 0.6067 while the previous day low was 0.6025. The daily 38.2% Fib levels comes at 0.6041, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6051, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6024, 0.6003, 0.5982
• Pivot resistance is noted at 0.6066, 0.6087, 0.6108

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