NZD/USD Price Analysis: Bears approach 0.6100 horizontal support

• NZD/USD extends pullback from 10-DMA, stays pressured of late.
• Two-month-old horizontal support tests sellers amid bearish MACD signals.
• RSI drops towards oversold territory to challenge further downside.
• Bulls have a bumpy road to return unless breaking 0.6455 hurdle.

NZD/USD holds lower ground near 0.6130, after reversing the bounce off a six-week low the previous day, as bears approach the key horizontal support during Wednesday’s Asian session.

That said, firmer prints of New Zealand Building Permits for July, up 5.0% MoM versus -2.3% prior, couldn’t favor the Kiwi pair buyers.

In doing so, the quote keeps the previous day’s U-turn from the 10-DMA hurdle, around 0.6185 by the press time.

The NZD/USD pullback from the 10-DMA also takes clues from the bearish MACD signal to aim for the 0.6110-6100 support region comprising multiple lows marked since early July.

Following that, the yearly low marked in the last month around 0.6025 and the 0.6000 psychological magnet may test the bears. It’s worth noting that the RSI (14) is speedily approaching the oversold territory and hence challenge the pair’s further downside.

Meanwhile, recovery moves beyond the 10-DMA immediate hurdle, close to 0.6185 by the press time, need validation from the latest swing high near 0.6255 to convince even the intraday buyers.

In that case, the month-start peak and the downward sloping resistance line from April 26, respectively near 0.6355 and 0.6450 will be in focus.

NZD/USD: Daily chart

Trend: Further weakness expected