NZDUSD had been steadily regaining ground after finding its feet at the 2023 low of 0.5984 in early June. However, the latest rebound quickly lost steam and the pair retraced lower, crossing below both its 50- and 200-day simple moving averages (SMAs)

The momentum indicators currently suggest that bearish forces are intensifying. Specifically, the RSI dived beneath its 50-neutral mark, while the stochastic oscillator is sloping downwards after exiting the 80-overbought zone.

Should the selling interest persist, the April low of 0.6110 could provide initial downside protection. Sliding beneath that floor, the price could challenge the March bottom of 0.6083 before the 2023 low of 0.5984 comes under examination. Further declines might then cease at the 0.5815 hurdle.

On the flipside, if the pair attempts to recoup some losses and manages to jump above the converging 50- and 200-day SMAs, it could meet resistance at the recent rejection region of 0.6246. Conquering this barricade, the bulls might aim for 0.6304 ahead of the four-month peak of 0.6383. A violation of that zone could trigger an advance towards the 2023 high of 0.6536.

Overall, NZDUSD is on the retreat again after failing to extend its recent rebound, while the drop below both its 50- and 200-day SMAs is further darkening the technical outlook. Therefore, for bulls to regain confidence, the price needs to reclaim those crucial levels.