NZD/USD technical analysis: Nosedives to fresh multi-year lows, around mid-0.6200s
- The pair remained under some heavy selling pressure within a short-term descending channel.
- Oscillators are already flashing oversold conditions and warrant some near-term consolidation.
The NZD/USD pair remained under some heavy selling pressure for the third consecutive session on Friday - also marking its seventh of downfall in the previous eight - and tumbled to fresh multi-year lows in the last hour.
The pair has been drifting lower along a one-week-old descending trend-channel formation on hourly charts, clearly indicating a well-established near-term bearish trend amid a goodish intraday pickup in the USD demand.
Currently flirting with the lower end of the mentioned trend-channel, extremely oversold conditions on hourly charts might hold back investors from placing fresh bearish bets and warrant some near-term consolidation.
Hence, any subsequent fall seems more likely to find some support near August 2015 swing lows, around the 0.6220-15 region, below which the pair might turn vulnerable to head towards testing sub-0.6100 levels in the near-term.
On the flip side, any meaningful recovery attempt now seems to confront some fresh supply near the 0.6300 round-figure mark and should cap any further up-move near the trend-channel resistance, around the 0.6315 region.
NZD/USD 1-hourly chart