NZD/USD sellers attack a one-week-old support line near 0.5590 early Monday morning in Europe. In doing so, the Kiwi pair drops for the third consecutive day while declining to the lowest levels since September 30.

Given the quote’s sustained trading below the 100-SMA and the 50-SMA, as well as the bearish MACD signals, the NZD/USD prices are likely to conquer the 0.5590 immediate support.

Following that, the recently flashed multi-month low near 0.5565 could gain the bear’s attention.

If the NZD/USD prices remain weak past 0.5565, a downward trajectory towards the March 2020 bottom surrounding 0.5470 and then to the 61.8% Fibonacci Expansion (FE) of September-October moves, near 0.5445, can’t be ruled out.

Alternatively, the 50-SMA and the 100-SMA guard the NZD/USD pair’s immediate recovery around 0.5685 and 0.5755 in that order.

It is worth noting that the 20-and 50-period Exponential Moving Averages (EMAs) have defended the occurrence of a bullish cross at around 0.5729, which indicates the strength of the greenback bulls.

Even if the quote rises past 0.5755, it needs to cross the monthly high of 0.5815 to convince the buyers.

Overall, NZD/USD is all set to refresh the multi-month low marked in September.

The price is attempting to slide out of the resistance of the dynamic bearish trendline that was formed on the back of the NFP data on Friday. A break there opens the risk of a correction into 0.5640/50 territories for the day ahead. First, the bulls need to clear 0.5625 to put a firm grip on the baton.

Kiwi Almost Completing its Extended Corrective Structure

Oct 10 2022

Stop Loss -1.07%

Holding time 3d4hr

0.55782

Entry price

0.55187

Stop loss price