#NZDUSD @ 0.61207 -imp levels: The asset has extended losses after a downside break of the Inverted Flag.

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• The asset has extended losses after a downside break of the Inverted Flag.
• Broadly, the kiwi bulls will find a cushion around 0.6060.
• The RSI (14) has shifted into the bearish range of 20.00-40.00, which signals more downside ahead.

The pair currently trades last at 0.61207.

The previous day high was 0.6234 while the previous day low was 0.6132. The daily 38.2% Fib levels comes at 0.6171, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6195, expected to provide resistance.

The NZD/USD pair has attempted a firmer rebound after declining to near 0.6100 in the Asian session. The pair has given an upside break of the consolidation formed in a narrow range of 0.6106-0.6120 and is expected to display a firmer pullback move ahead.

On a four-hour scale, the breakdown of the ‘Inverted Flag’ has resulted in a steep decline in the asset. Usually, the consolidation phase in the above-mentioned chart pattern indicates the initiation of significant shorts by the market participants. Going forward, the downside will remain favored, however, a pullback move towards the 10-Exponential Moving Average (EMA) cannot be ruled out. Also, the horizontal cushion for supporting the kiwi bulls is plotted from July 14 low at 0.6060.

The 20-EMA at 0.6180 is in a declining mode, which adds to the downside filters. Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more downside ahead.

A pullback move to near 10-EMA at 0.6160 will trigger a bargain sell, which will drag the asset towards the round-level support at 0.6100, followed by July 14 low at 0.6060.

Alternatively, a break above Thursday’s high at 0.6252 will send the asset towards August 8 high at 0.6304. A breach of the latter will unleash the kiwi bulls for further upside towards the August 1 high at 0.6353.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6127 at the time of writing. Pair opened at 0.6137 and is trading with a change of -0.16 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6285, 50 SMA 0.6248, 100 SMA @ 0.6373 and 200 SMA @ 0.6582.

The previous day high was 0.6234 while the previous day low was 0.6132. The daily 38.2% Fib levels comes at 0.6171, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6195, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6101, 0.6065, 0.5998
• Pivot resistance is noted at 0.6203, 0.627, 0.6306

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