NZD/USD bears stay in the driver’s seat for the fourth consecutive day, down 0.23% intraday around 0.6240 during early Friday. In doing so, the Kiwi pair remains depressed near the 1.5-month low marked the previous day.

It should be noted that the recent fears of more US-China tussles over the spy balloon and Taiwan also bolster the US Dollar’s safe-haven demand, which in turn weighs on the NZD/USD price. The geopolitical fears have a double impact on the Kiwi pair due to New Zealand’s trade ties with China.

That said, the quote’s sustained downside break of the previous support line from mid-November 2022, now resistance around 0.6300, keeps the pair bears hopeful. Adding strength to the downside bias are the bearish MACD signals and the lower high formation on the daily chart.

As a result, the NZD/USD bears are well-set to battle with a 2.5-month-long support line, currently around 0.6220.

However, the quote’s further downside will need validation from the 0.6200 round figure and the 200-DMA level of 0.6177 to keep the bears in command.

Meanwhile, the previous support line from November, around 0.6300, guards the NZD/USD pair’s recovery moves.

Following that, a two-week-old descending resistance line, close to 0.6340 at the latest, will be crucial for the pair buyers to cross. Even so, the weekly high of 0.6390 and the .06400 round figure could challenge the upside momentum.

In a case where the NZD/USD remains firmer past 0.6400, the odds of witnessing a run-up toward the monthly high near 0.6540 can’t be ruled out.

NZDUSD vulnerable to bears to below the DEMA200

Feb 18 2023