- The NZD/USD pair added to its recent losses and continued drifting lower on Monday, hitting fresh 2-1/2 week lows in the last hour.
- The pair now seems have found acceptance below 50% Fibo. of the 0.6487-0.6792 recent up-move from multi-month lows set in June.
A subsequent slide below a support marked by over one-month-old ascending trend-line confirms a fresh near-term bearish breakdown and sets the stage for an extension of the ongoing downward trajectory.
With technical indicators on the daily chart gaining negative momentum and still far from being in the oversold territory, the pair seems more likely to weaken farther towards challenging the 0.6600 round figure mark.
The mentioned handle coincides with 61.8% Fibo. level, which if broken should pave the way for a further near-term depreciating move and accelerate the slide back towards monthly lows – around the 0.6570-65 region.
On the flip side, the 0.6640-50 region (50% Fibo. level) now becomes immediate resistance and is followed by the 0.6670 region – a confluence support breakpoint comprising of 100-day SMA and 38.2% Fibo. level.