NZD/USD Price Analysis: Oversold RSI backs corrective pullback to previous support
- NZD/USD bears take a breather at 15-month low during the biggest weekly fall since November.
- Previous support line from late September guards recovery moves.
- Oversold RSI conditions challenge further selling but rebound remains elusive below 0.6700.
- Bears remain directed towards 0.6480 support zone with September 2020 lows likely testing immediate downside.
NZD/USD struggles to regain 0.6600 while bouncing off October 2020 levels during early Friday morning in Europe.
The kiwi pair dropped during the last six days to form the multi-day bottom around 0.6570. However, oversold RSI conditions triggered the quote’s corrective pullback.
Even so, the intraday buyers need to cross the descending trend line resistance, previous support near 0.6610, to justify the upside momentum.
Following that, a convergence of the 10-DMA and a descending trend line from January 13, near 0.6700, becomes crucial for NZD/USD buyers to watch.
Alternatively, fresh declines will wait for the downside break of 0.6570. The same gains support from the bearish MACD signals.
In that case, September 2020 low near 0.6510 may act as immediate support ahead of directing the NZD/USD bears to the troughs marked in August 2020 and June 2019 around 0.6480.
Overall, NZD/USD prices remain vulnerable to the further downside but the RSI conditions triggered the latest bounce.
NZD/USD: Daily chart
Trend: Bearish