The New Zealand dollar is still under pressure against the US dollar, although it is still trading above a critical support level.
The NZD/USD finds support above recent lows, indicating a bearish tendency.
On Thursday, the NZD/USD is sliding due to a higher US dollar and risk aversion. The fall found support above the 0.6920 area, as it did last week (June lows). A breach below that level would likely lead to a test of 0.6900 and further losses, with little support until 0.6790.
With a bearish bias, the pair continues to trade sideways between 0.7100 and 0.6900. The negative tone would be eased if the price rose above the 20-day simple moving average of 0.7120.
Indicators of technical analysis are likewise skewed to the downward. To open the way for a continuation of the slide, the price must break through the important 0.6920 region (or 0.6900 for a stronger confirmation). In addition, the 55-week moving average is in the same vicinity. As a result, a weekly closing below should likewise indicate further losses./n
