NZD/USD touches new 29-month bottom; sharp sell-off continues.
NZD/USD is posting an aggressive bearish rally over today’s session, recording a fresh 29-month low of 0.6641. The price plunged below the lower Bollinger Band in the 4-hour chart, suggesting an extension of the downward pressure. The momentum indicators are supportive of the negative picture, with the RSI falling into the oversold zone below 30 level and the MACD strengthening its falling mode below the trigger and zero lines.
Should the market extend losses, support could be met at the 0.6570 hurdle, taken from the low on March 2016. A significant leg below this area could send prices towards the 0.6345 level, identified by the bottom on January 2016.
However, if the market manages to pick up speed, the 0.6686 level could offer nearby resistance ahead of the 0.6712 level. A close above the latter and a climb above the 20- and 40-simple moving averages (SMAs) in the near term would raise chances for further increases. In this case, prices could hit the 0.6760 level.
Overall, NZD/USD continues the downward pattern in the medium-term, creating lower lows and lower highs.
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