NZDUSD experienced a vast selloff after posting a fresh five-month high of 0.6410 in mid-July. However, in the last few sessions , the bulls have been giving a strong fight around 0.5902, which is the 61.8% Fibonacci retracement of the 0.5510-0.6536 upleg, in an effort to curb the steep decline.

The short-term oscillators are starting to reflect that the latest retreat could be overstretched. The RSI is touching its 30-oversold mark, while the stochastics have entered their 20-oversold territory.

Should the pair bounce off the 61.8% Fibo of 0.5902 and pierce through the descending trendline that connects a series of lower highs, initial resistance could be found at the 50.0% Fibo of 0.6023. A successful jump above the latter could open the door for the 38.2% Fibo of 0.6144. Conquering this barricade, the bulls may attack the 23.6% Fibo of 0.6294.

Alternatively, if the price extends its decline, the 78.6% Fibo of 0.5730 could act as the first line of defence. Should that obstacle fail, the September 2022 support of 0.5598 could prove to be the next hurdle for sellers to clear. Failing to halt there, the price might then descend towards the October 2022 bottom of 0.5510.

Overall, despite the hard battle around 0.5900, it seems that NZDUSD is struggling very hard to find its footing. Hence, a clear close below that region could re-fuel the latest decline.