- NZDUSD extends its recent bearish leg
- Violates 50-day SMA and eyes 200-day SMA
- Oscillators endorse the recent dive
NZDUSD had been in a steep uptrend since its 2023 low of 0.5772, generating consecutive higher highs. However, the advance stalled around the 78.6% Fibonacci retracement of the 0.6536-0.5772 downleg, with the pair experiencing a strong pullback.
If bearish pressures persist and the price crosses below the 200-day simple moving average (SMA), immediate support could be met at the 38.2% Fibo of 0.6064. Dipping beneath that zone, the pair may test the 23.6% Fibo of 0.5952. A violation of that region could pave the way for the September low of 0.5858, which also held its ground in November.
On the flipside, should the pair attempt to erase the recent correction, the 50.0% Fibo of 0.6154 could prove to be the first barricade for the bulls to clear. Further advances could then cease around the 61.8% Fibo of 0.6244. Breaking above that hurdle, the price might challenge the 78.6% Fibo of 0.6373, a region that capped the pair’s uptrend in late December.
Overall, NZDUSD bears seem to be holding the upper hand in recent sessions, pushing the price to a fresh one-month low. The impending test of the 200-day SMA could decide whether the retreat could accelerate.
