#NZDUSD @ 0.58232 takes offers to refresh multi-month low, prints four-day downtrend., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• NZD/USD takes offers to refresh multi-month low, prints four-day downtrend.
• Clear downside break of four-month-old descending trend line, 78.6% Fibonacci retracement favor sellers.
• Oversold RSI may trigger corrective bounce on the way to year 2020 bottom.

The pair currently trades last at 0.58232.

The previous day high was 0.5913 while the previous day low was 0.5842. The daily 38.2% Fib levels comes at 0.5869, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5886, expected to provide resistance.

NZD/USD takes offers to refresh the 30-month low as it drops to 0.5810 during Thursday’s Asian session. In doing so, the Kiwi pair extends the previous day’s downside break of a four-month-old support line, as well as the 78.6% Fibonacci retracement of the 2020-21 upside.

With bearish MACD signals supporting the quote’s latest break of the previous key support, the prices are likely to decline towards the year 2020 low near 0.5470.

However, the oversold RSI (14) may offer intermediate halts during the south run.

In that case, the round figures near 0.5800 and 0.5500 may offer breathing spaces to the NZD/USD bears.

Alternatively, recovery remains elusive unless the quote stays below the 78.6% Fibonacci retracement level near the 0.5900 threshold.

Also likely to challenge the pair’s immediate rebound is the support-turned-resistance from May, around 0.5870.

Even if the NZD/USD prices rally beyond the 0.5900 mark, the 0.6000 psychological magnet and the monthly high near 0.6165 could challenge the quote’s further upside.

Trend: Further downside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5814 at the time of writing. Pair opened at 0.5852 and is trading with a change of -0.65% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6056, 50 SMA 0.6183, 100 SMA @ 0.6259 and 200 SMA @ 0.6511.

The previous day high was 0.5913 while the previous day low was 0.5842. The daily 38.2% Fib levels comes at 0.5869, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5886, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5825, 0.5798, 0.5755
• Pivot resistance is noted at 0.5896, 0.5939, 0.5966

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