#NZDUSD @ 060751 drops towards the seven-week low marked the previous day, @nehcap view: Limited downside expected, Pivot Orderbook analysis

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• NZD/USD drops towards the seven-week low marked the previous day.
• Three-day-old bearish channel, descending RSI line keep sellers hopeful.
• Sellers have a limited downside room, bulls need validation from 200-HMA.

The pair currently trades last at 0.60751.

The previous day high was 0.6133 while the previous day low was 0.606. The daily 38.2% Fib levels comes at 0.6088, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6105, expected to provide resistance.

NZD/USD fades the early Asian session rebound as it retreats to 0.6070 on Friday. In doing so, the Kiwi pair portrays a pullback from the 20-HMA while staying inside a short-term bearish trend channel.

Given the receding bullish bias of the MACD and the RSI retreat supporting the quote’s latest weakness, the NZD/USD prices are likely to remain weak.

However, the stated channel’s support line, around 0.6045, could test the bears before directing them to the yearly low marked in July, around 0.6025.

It should be noted that the 0.6000 psychological magnet could act as a tough nut to crack for the NZD/USD bears.

Alternatively, the 20-HMA and the stated channel’s upper line, respectively near 0.6085 and 0.6095, quickly followed by the 0.6100 round figure comprising multiple lows marked during late August, could restrict short-term NZD/USD recovery.

Even if the pair rises past 0.6100, it can aim for the 200-HMA hurdle, around 0.6160 by the press time.

Overall, NZD/USD remains on the bear’s radar while staying on its way to 0.6000.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6072 at the time of writing. Pair opened at 0.608 and is trading with a change of -0.13% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6251, 50 SMA 0.6233, 100 SMA @ 0.6344 and 200 SMA @ 0.6565.

The previous day high was 0.6133 while the previous day low was 0.606. The daily 38.2% Fib levels comes at 0.6088, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6105, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6049, 0.6018, 0.5975
• Pivot resistance is noted at 0.6122, 0.6164, 0.6195

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