NZD/USD Price Analysis: Dips below key Fibonacci support
- NZD/USD has breached Fibonacci support at 0.6317 amid losses in the US index futures.
- The daily chart RSI is reporting oversold conditions.
The selling interest around New Zealand dollar remains strong amid risk-off action in the financial markets.
The NZD/USD pair fell below 0.6317 soon before press time. That level marks the 78.6% Fibonacci retracement of the rally from 0.6204 to 0.6733. The pair faced rejection near 0.6344 earlier today and is currently reporting a 0.32% on the day. Meanwhile, the futures on the S&P 500 are down more than 0.30% at press time.
While the 14-day relative strength index is reporting oversold conditions with a below-50 print, the price chart is showing no signs of seller exhaustion. Additionally, the 5- and 10-day averages are trending south.
The path of least resistance remains to the downside. Acceptance under support at 0.6317 would expose the Oct. 16 low of 0.6241. On the higher side, a move above the descending 10-day average at 0.6397 may cause sellers to rethink their bias.