#NZDUSD @ 0.56002 fades bounces off 31-month low, retreats from intraday high of late., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• NZD/USD fades bounces off 31-month low, retreats from intraday high of late.
• Support-turned-resistance limits immediate upside ahead of 100-HMA, weekly falling trend line.
• Bears should wait for a clear break of 0.5560 for conviction.

The pair currently trades last at 0.56002.

The previous day high was 0.5658 while the previous day low was 0.5536. The daily 38.2% Fib levels comes at 0.5611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5583, expected to provide support.

NZD/USD struggles to defend the previous day’s corrective bounce from the 2.5-year low, easing to 0.5580 ahead of Wednesday’s European session.

In doing so, the Kiwi pair takes a U-turn from the two-week-old previous support line, near 0.5595 at the latest.

The pullback moves also gain support from the quote’s failure to cross the 100-HMA on Tuesday, despite refreshing the weekly top.

However, an upward-sloping trend line connecting the recent lows, around 0.5560, limits the quote’s immediate declines ahead of directing them to the recent trough surrounding 0.5535.

In a case where the NZD/USD pair remains bearish past 0.5535, which is more likely considering the absence of the oversold RSI, the south-run could aim for the 0.5500 threshold and the year 2020 low near 0.5470.

Meanwhile, an upside break of the immediate support-turned-resistance line, at 0.5595 now, needs validation from the 0.5600 to convince intraday buyers of the NZD/USD.

Even so, the 100-HMA and the weekly resistance line, respectively around 0.5625 and 0.5655, could challenge the bulls before giving them control.

Trend: Further downside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5585 at the time of writing. Pair opened at 0.5586 and is trading with a change of -0.02% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5763, 50 SMA 0.6029, 100 SMA @ 0.6165 and 200 SMA @ 0.6433.

The previous day high was 0.5658 while the previous day low was 0.5536. The daily 38.2% Fib levels comes at 0.5611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5583, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5529, 0.5471, 0.5407
• Pivot resistance is noted at 0.5651, 0.5715, 0.5773

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