NZDUSD maintains a downside bias, with scope to retest the lower Bollinger Band at 0.6496 (a six-year low). The RSI remains in bearish territory below 50, although it is trending sideways, which suggests consolidation in the market in the near-term.
The overall market structure is bearish due to the bearish alignment of the Bollinger Bands which keep prices in a downward channel.
The market tried to make a short-term recovery move but failed well ahead of the falling 20-day moving average (middle of the band) and since then the market traded between a range of 0.6553 and 0.6693.
As long as prices remain below the key 0.7000 level, the bearish market bias remains strong. A breach of the 0.6496 low would open the way toward the 0.6400 area. The market has been in a bearish trend since the fall from 0.7743 on April 28.
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