NZD/USD Price Analysis: Turns south towards 0.6900 after rejection above 50-SMA
- NZD/USD faces rejection above 50-SMA resistance, drops below 0.6950.
- Bears are now targeting the 21-SMA demand area.
- RSI has crossed the midline for the downside.
NZD/USD sellers return on Thursday after a temporary reversal saw stiff resistance near the 0.6975 region.
As observed on the four-hour chart, the kiwi is heading south to test the downward-sloping 21-Simple Moving Average (SMA) at 0.6942, having failed to find acceptance above the mildly bearish 50-SMA at 0.6973.
The Relative Strength Index (RSI) has flipped bearish on the said timeframe after it pierced through the midline from above. The leading indicator now stands at 49.04.
A firm break below the 21-SMA could trigger a quick drop towards 0.6900, below which the eight-month lows of 0.6881 could be tested.
NZD/USD: Four-hour chart
On the upside, a four-hourly candlestick closing above the 50-SMA barrier will expose the descending 100-SMA at 0.6986.
The 0.7000 psychological level will be the level to beat for the NZD bulls.