NZD/USD Price Analysis: Kiwi bears dominate within pennant formation, 0.5910 eyed

• NZD/USD remains depressed at YTD low, down for 10 consecutive days.
• Kiwi portrays bearish consolidation within weekly pennant, 0.5910 becomes necessary for sellers fresh entry.
• Buyers remain off the table below fortnight-old resistance line.

NZD/USD bears keep the reins despite showing resilience around 0.5920 heading into Monday’s European session. In doing so, the Kiwi pair drops for the tenth consecutive day amid the cautious mood ahead of this week’s top-tier data/events.

Also read: NZD/USD extends the downside to the vicinity of 0.5900

That said, a three-day-long pennant formation at the Year-To-Date (YTD) low, currently between 0.5910 and 0.5940, restricts the immediate downside of the quote.

Adding strength to the upside filter is the 100-Hour Moving Average (HMA) level of around 0.5945.

It’s worth noting that the 200-HMA and a fortnight-old descending trend line, respectively near 0.5985 and 0.6025 restrict the short-term upside of the NZD/USD pair.

Following that, the monthly high of around 0.6135 will be in the stoplight.

On the contrary, NZD/USD bears need a clear downside break of 0.5910, as well as a sustained downside past 0.5900, to keep the reins.

In that case, the early October 2022 peak of around 0.5815 could lure the Kiwi pair sellers before directing the downside towards the previous yearly low of near 0.5510.

Overall, NZD/USD is likely to remain bearish but the downside needs a pause before the next leg towards the south. The same highlights this week’s US PMIs, Durable Goods Orders and Jackson Hole Symposium, not to forget China news, as the key catalysts.

NZD/USD: Hourly chart

Trend: Further downside expected