The New Zealand Dollar (NZD) has been losing ground against the US Dollar (USD) for the past four days, with the NZD/USD pair trading near a six-week low of 0.6240 at the time of writing. The pair has been on a downward trajectory since it broke the three-month-old ascending trend line, with bearish MACD signals favoring sellers. The downward trend is being supported by an upward-sloping support line from late November, which could see the pair fall further to the 200-day moving average (DMA) of 0.6177.
However, bulls need to break through the fortnight-old descending resistance line in order to make any headway. If they succeed, the pair could reach the 0.6390 weekly high and the 0.6400 round figure. If the momentum continues, the NZD/USD could even reach the monthly high of 0.6540.
On the daily chart, the NZD/USD pair has been in a downtrend since it broke the previous support line from mid-November, now acting as resistance at 0.6300. The bearish MACD signals and the lower high formation suggest that the pair could continue to decline. The 2.5-month-long support line around 0.6220 is likely to be tested in the near term, while the 0.6200 round figure and the 200-DMA at 0.6177 could provide further downside pressure.
In order to turn the tide, bulls need to break the 0.6300 resistance level and the fortnight-old descending resistance line. If they manage to do so, the pair could make a run for the 0.6390 weekly high and the 0.6400 round figure. If the momentum continues, the NZD/USD could even reach the monthly high of 0.6540.
Overall, the NZD/USD is likely to remain in a downtrend in the near term, with the 0.6200 round figure and the 200-DMA at 0.6177 being key levels to watch. On the upside, bulls need to break the 0.6300 resistance level and the fortnight-old descending resistance line in order to make any headway. If they succeed, the pair could reach the 0.6390 weekly high and the 0.6400 round figure. If the momentum continues, the NZD/USD could even reach the monthly high of 0.6540.
In the bigger picture, the NZD/USD pair has been in a downtrend since the beginning of 2021, with the pair falling from a high of 0.7100 in January to its current level of 0.6240. The pair has been trading within a range of 0.6240-0.6540 since late November, with the 0.6200 round figure and the 200-DMA at 0.6177 being key levels to watch.
On the upside, bulls need to break the 0.6300 resistance level and the fortnight-old descending resistance line in order to make any headway. If they succeed, the pair could reach the 0.6390 weekly high and the 0.6400 round figure. If the momentum continues, the NZD/USD could even reach the monthly high of 0.6540.
Overall, the NZD/USD is likely to remain in a downtrend in the near term, with the 0.6200 round figure and the 200-DMA at 0.6177 being key levels to watch. On the upside, bulls need to break the 0.6300 resistance level and the fortnight-old descending resistance line in order to make any headway. If they succeed, the pair could reach the 0.6390 weekly high and the 0.6400 round figure. If the momentum continues, the NZD/USD could even reach the monthly high of 0.6540.
In conclusion, the NZD/USD pair is likely to remain in a downtrend in the near term, with the 0.6200 round figure and the 200-DMA at 0.6177 being key levels to watch. On the upside, bulls need to break the 0.6300 resistance level and the fortnight-old descending resistance line in order to make any headway. If they succeed, the pair could reach the 0.6390 weekly high and the 0.6400 round figure. If the momentum continues, the NZD/USD could even reach the monthly high of 0.6540.
