- NZD/USD discards the previous upside momentum and trades lower on Thursday.
- Additional losses for the pair if price decisively breaks 0.6950.
- Momentum oscillator holds onto the oversold zone with a neutral bias.
NZD/USD edges down on Thursday in the Asian trading hour. The pair opened higher but failed to sustain the upside momentum.
At the time of writing, NZD/USD is trading at 0.6960, up 0.21% for the day.
NZD/USD daily chart
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On the daily chart, the pair has been consolidating in a broader trading range of 0.6960 and 0.7100 for almost the previous two months. The range was broken on August 17 with heavy selling pressure. NZD/USD tested yearly lows at 0.6805 on August 20.
The pair attempted to make a recovery back to the mentioned range, but struggles near 20-day and 50-day Simple Moving Averages (SMAs) at 0.6972 and 0.6984.
That said, If NZD/USD is sustained below intraday low, it could fall back to the previous day’s low of 0.6930.
A daily close below the mentioned level would allow bears to meet the 0.6920 horizontal support level followed by the low of August 24 at 0.6878.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator trades below the midline. Any uptick in the MACD could trigger buying opportunities in the pair.
NZD/USD would test the 0.7000 psychological level on moving to the higher side.
NZD/USD bulls would next target the high of August 17 at 0.7032 followed by the 0.7080 resistance level.
