- NZD/USD remains under pressure in the initial Asian trading hours.
- More downside envisioned if price decisively breaks below 0.7230.
- Momentum oscillator remains neutral.
The NZD/USD pair extends the previous day losses on Thursday. The pair moves in a very close trading band.
At the time of writing, NZD/USD trades at 0.7237, up 0.01% for the day.
NZD/USD 4-hour chart
On the 4-hour chart, the NZD/USD pair has been consolidating near the 0.7240 level. The descending trendline from the highs of 0.7317 acts as a defensive for the bulls. The NZD/USD pair faces multiple rejections while approaching the downward sloping line.
If NZD/USD breaks below the 0.7230 level, then it could find the first support near the May 28 low in the vicinity of 0.7200.
The Relative Strength Index (RSI) indicator trades below 40. If it remained lower, then more selling opportunities would occur. The bears would approach the 0.7180 support level followed by the May 21 low at 0.7153.
Alternatively, if price makes a sustained move above 0.7240, then it could first locate the upside target at the 0.7265 horizontal resistance level.
Market participants would be encouraged to take over the 0.7300 horizontal resistance level followed by the May 26 high in the vicinity of the 0.7320 region.