NZD/USD Price Analysis: Plummets to fresh weekly lows, below 0.6600 mark

• A strong pickup in the USD demand exerted some heavy pressure on NZD/USD.
• A sustained break below 200-hour SMA was seen as a key trigger for bearish traders.
• The pair now seems vulnerable to retest monthly swing lows, around mid-0.6500s.

The NZD/USD pair witnessed some heavy selling on Thursday and retreated further from three-week tops touched in the previous session. A sustained break below 200-hour SMA was seen as a key trigger for intraday bearish traders and behind the latest leg of a sudden fall over the past hour or so, back below the 0.6600 mark.

Meanwhile, technical indicators have again started gaining bearish traction on the daily chart, which supports prospects for additional weakness amid a strong pickup in the US dollar demand. However, oscillators on the 1-hourly chart are already flashing oversold conditions and warrant some caution before placing fresh bearish bets.

That said, the pair still seems vulnerable to extend the downward trajectory towards retesting monthly swing lows support, around the 0.6550-45 region. The bearish trend could further get extended towards challenging the key 0.6500 psychological mark, which if broken decisively should pave the way for a further near-term depreciating move.

On the flip side, any attempted recovery move might now be seen as a selling opportunity. This, in turn, should cap the upside near the 200-hour SMA support breakpoint, around the 0.6630 region. However, a sustained move beyond might trigger a short-covering move and lift the NZD/USD pair back towards the 0.6660 supply zone.

NZD/USD 1-hourly chart

Technical levels to watch