NZDUSD looks to test the 2022 low at 0.6212

The  NZDUSD  – like other pairs vs the USD – is on a downward streak. For the NZDUSD it is working on its 8th consecutive day to the downside. The move lower has taken the price from 0.6575 on June 3 to the low of 0.6218 today so far. Yesterday the price closed at 0.62589. Stay below that level is more bearish

The move to the downside has pushed the price toward the May low which bottomed at 0.6212 on May 13. That is also the low for the year. The low price on May 12 was at 0.62164. Getting below both those levels would open up the door for further downside momentum. The low price just reached 0.6218 – just above those levels and trades at 0.6224 currently.

Looking at the hourly chart, what helped the downside momentum today (and kept the sellers in firm control), was that the corrective move to the upside did stall against a swing area between 0.62748 at 0.6292. The high price also retested the underside of a broken channel trendline and held that level (see hourly chart above). The sellers pushed lower after that test and hold. Bearish.

What would hurt the bearish bias today?

With the price testing the 2022 low, there could be dip buyers against the level with stops on a break below. Holding the level, and moving above the low from yesterday at 0.6245 would likely lead to a rotation back to the upside as the double bottom and failure to keep the extension lower going starts to weigh on the shorts after the sharp move seen over the last 8 trading days.

Absent that, however, and the buyers remain in full control.

Looking at the daily chart below, the next downside target would be April and May 2020 between 0.6155 and 0.61748. Move below that level and traders will start to look toward 0.6070 to 0.6092.