NZD/USD Price Analysis: Tumbles below previous week’s low at 0.6750, eyes 61.8% Fibo retracement

• A slippage below the 50% Fibo retracement has weakened the kiwi bulls.
• Death cross, represented by the 50- and 200 EMAs adds to the downside filters.
• A re-test of the previous week’s low will be an optimum selling opportunity.

The NZD/USD pair has witnessed a bearish open rejection reverse on Easter Monday. The asset opened at 0.6765, moved higher to 0.6776, and then the greenback bulls attacked the asset, which dragged the major sharply below the opening price to a low near 0.6746. The pair has tumbled below the previous week’s low at 0.6754, which has elevated volatility in the counter. This has unleashed the greenback bulls, which can drag the asset at a higher pace.

On a four-hour scale, NZD/USD is auctioning below the 50% Fibonacci retracement (placed from January 28 low at 0.6529 to April 5 high at 0.7035) at 0.6783. A death cross represented by the 50- and 200-period Exponential Moving Averages (EMAs) at 0.6860 signals more downside ahead.

The Relative Strength Index (RSI) (14) has firmly established in a bearish range of 20.00-40.00, which signals the strength of the greenback bulls.

Going forward, a re-test of the previous week’s low at 0.6754 will be an optimal selling opportunity for the market participants. This will drag the asset towards the 61.8% Fibo retracement at 0.6723, followed by the April 2 high at 0.6684.

On the flip side, kiwi bulls can regain control if the asset overstep April 14 high at 0.6835. This will drive the major towards the March 18 low and 23.6% Fibo retracement at 0.6875 and 0.6917 respectively.

NZD/USD four-hour chart