NZDUSD has been tumbling over Wednesday’s and today’s Asian sessions, while it recorded a fresh one-month low of 0.7175. The aggressive sell-off pushed the price below several key levels such as the 23.6% Fibonacci retracement level at 0.7280 from 0.6780 to 0.7436, 0.7255 and 0.7230.
In the 4-hour chart, short-term indicators are signaling a bearish movement. The Relative Strength Index (RSI) is holding near the 30 level, while the MACD oscillator is weakening in the oversold territory. Also, the latter oscillator recorded a bearish crossover with its trigger line in the previous sessions, indicating further losses.
If prices extend the downward pressure, immediate support could come at 0.7140. Below that, the price could hit the 50.0% Fibonacci retracement level at 0.7436. As a side note, the price needs to go through the 38.2% Fibonacci mark slightly above the one-month low.
In the event of an upside reversal, the next level to watch is the 0.7230 resistance obstacle as well as the 0.7255 level and the 23.6% Fibonacci at 0.7280.
Origin: XM
