NZD/USD Price Analysis: Sellers attack 0.5800 inside bullish channel

• NZD/USD pares the first monthly gain in three inside a bullish chart formation.
• MACD, RSI suggest short-term downside but bears need validation from 0.5740 to retake control.
• Buyers have a long road to success, 0.5900 challenges short-term upside.

NZD/USD holds lower ground near 0.5800 as bulls take a breather after a two-week uptrend. Even so, the Kiwi pair stays inside a short-term bullish channel, as well as the 200-SMA, to keep the buyers hopeful.

That said, bearish signals from the MACD and the RSI (14) weakness suggest the intraday weakness of the pair. Hence, a convergence of the stated channel’s lower line and the 200-SMA, close to 0.5740 gains major attention.

Before that, the 38.2% Fibonacci retracement level of the pair’s September-October downturn, around 0.5760, could entertain the NZD/USD sellers.

In a case where the quote drops below 0.5740, the odds of witnessing a slump toward the yearly low near 0.5515, marked earlier in the month, can’t be ruled out.

Alternatively, recovery moves may initially aim for the monthly high of 0.5870 before testing the bear’s patience by poking the channel’s upper line, close to 0.5900 by the press time.

It should be noted that the 61.8% Fibonacci retracement level near 0.5915, also known as the golden ratio, acts as the last defense for the NZD/USD bears before giving control to the buyers targeting the 0.6000 psychological magnet.

NZD/USD: Four-hour chart

Trend: Limited downside expected