NZD/USD Price Analysis: Buyers need validation from 0.5655

• NZD/USD fades bounces off 31-month low, retreats from intraday high of late.
• Support-turned-resistance limits immediate upside ahead of 100-HMA, weekly falling trend line.
• Bears should wait for a clear break of 0.5560 for conviction.

NZD/USD struggles to defend the previous day’s corrective bounce from the 2.5-year low, easing to 0.5580 ahead of Wednesday’s European session.

In doing so, the Kiwi pair takes a U-turn from the two-week-old previous support line, near 0.5595 at the latest.

The pullback moves also gain support from the quote’s failure to cross the 100-HMA on Tuesday, despite refreshing the weekly top.

However, an upward-sloping trend line connecting the recent lows, around 0.5560, limits the quote’s immediate declines ahead of directing them to the recent trough surrounding 0.5535.

In a case where the NZD/USD pair remains bearish past 0.5535, which is more likely considering the absence of the oversold RSI, the south-run could aim for the 0.5500 threshold and the year 2020 low near 0.5470.

Meanwhile, an upside break of the immediate support-turned-resistance line, at 0.5595 now, needs validation from the 0.5600 to convince intraday buyers of the NZD/USD.

Even so, the 100-HMA and the weekly resistance line, respectively around 0.5625 and 0.5655, could challenge the bulls before giving them control.

NZD/USD: Hourly chart

Trend: Further downside expected