- The NZD / USD remained under selling pressure for the second consecutive session on Wednesday.
- The configuration favors bearish traders in the middle of the 0.6000 confluence support.
The NZD / USD pair finally broke its daily consolidated trading range and fell to three-week lows around the region of 0.5960 during the mid-European session on Thursday. The follow-up sale for the second consecutive session adds credibility to the day’s bearish break below the key psychological bar of 0.60.
The level mentioned marked significant confluence support including 50-day SMA and the lower end of a weeks-old ascending trend channel. The breakdown is further reinforced by the fact that the technical indicators of the daily chart (RSI and MACD) have just started to drift into negative territory.
Therefore, an extension of the current slide, more towards the test of the support area 0.5910-0.5900, now seems a separate possibility in the midst of a sudden upturn in demand in USD. The USD has taken aggressive offers in the last hour after President Donald Trump said that having a strong dollar was a good thing.
On the other hand, the break point of the confluence support near the 0.6000 mark should now keep a lid on any recovery attempt. That said, a sustained force above said obstacle could prompt short-term short-term movement and lift the pair further towards the intermediate 0.6070-75. resistance on the way the 0.6100 mark.