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NZDUSD halts decline at a fresh 9-month low of 0.5858
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Hovers around 61.8% Fibonacci retracement of the 0.5510-0.6535 upleg in the past three weeks
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Momentum indicators remain tilted to the bearish side, increasing downside risks
NZDUSD has been stuck in a steep downtrend since its five-month high of 0.6410 in mid-July. Even though the pair appears to have found its footing after recording a fresh nine-month low of 0.5858, it has been struggling to break above the 61.8% Fibo of 0.5902 for quite some sessions.
Should the price extend its retreat, initial support could be met at the recent nine-month low of 0.5858. Sliding beneath that floor, the pair may descend towards the 78.6% Fibo of 0.5730. A violation of that region could open the door for the September 2022 support of 0.5598.
On the flipside, if the bulls regain control, the 61.8% Fibo of 0.5902 could prove to be the first barricade for them to overcome. Piercing through that wall, the pair could advance towards the 50.0% Fibo of 0.6023 before the 38.2% Fibo of 0.6144 appears on the radar. Even higher, the 23.6% Fibo of 0.6294 might curb further upside attempts.
Overall, despite pausing its steep downtrend, NZDUSD seems unable to escape its recent range. A failure to claim the 61.8% Fibo of 0.5902 could easily spark another round of weakness.
