NZDUSD switched to a bearish mood again on Thursday after a neutral session, stretching its downtrend to a fresh two-year low of 0.6235.
In technical indicators, the MACD remains negatively charged below its red signal line, while the RSI and the Stochastics have no intention of exiting the oversold territory, though they keep a foothold around their previous lows, signaling a cautiously bearish bias.
The next opportunity for a rebound could be nearby at 0.6160. This is where market actions faced limitations during the first half of 2020; therefore any step lower may see a continuation towards the 0.6000 psychological mark. Marginally lower, the support of 0.5920 will be on the radar as well. However, if the bears dominate below 0.5842 too, the way will clear towards the important barrier of 0.5658 from March 2020.
On the upside, traders will keep a close eye on the red Tenkan-sen line at 0.6400, which has been rejecting bullish attempts since the start of April. A successful close above that line could give the green light to the 20-day simple moving average (SMA), and more importantly, bring the 0.6540 monthly bar into scope. Additional gains from here would raise confidence that the bullish wave might be something more than temporary.
Summarizing, the bearish outlook continues to worsen in the NZDUSD market, with the focus turning now to the 0.6160 barricade. In case the bulls come into play, traders will look for immediate resistance around 0.6400.
