Technical analysis

Today, the NZD/USD pair is trading in the range of $0.6230-60, having reached a new 2-year low of $0.6215 yesterday. The pair broke through the support of $0.6275, which became the nearest resistance. On the hourly chart, NZD/USD dropped below the moving average line MA (200) H1 ($0.6365) and on the four-hour chart it remained below MA (200) H4 ($0.6665). Technically speaking, the support of $0.6215 can keep prices from further decline. The upper limit of $0.6365-80 represents the resistance level.

It is worth noting that the 14-day relative strength index (RSI (14) on D1) is below the level of 30, which signals a possible change in the direction of price movement.

⦁ Resistance levels are: $0.6275, $0.6365-80, $0.6460

⦁ Support levels are: $0.6215,  $0.6150-65, $0.6080

The main scenario for the pair's promotion — support breakout is $0.6215 (May 12 low) and there may be a decline to $0.6150-65 (May 27-29’ 2020 lows)

An alternative scenario — the resistance breakout is $0.6275 (May 10 low) and there may be an increase to $0.6365-80 (May 11 high, MA (200) H1)