NZDUSD justifies downbeat Q2 New Zealand job numbers while refreshing weekly low, following downside break of a three-week-old bullish channel. However, the 200-SMA restricts further declines of the Kiwi pair, which in turn joins firmer China PMI to trigger the latest rebound. However, support line of the aforementioned channel, near 0.6255, guards immediate recovery moves ahead of directing buyers towards weekly peak of 0.6352. Following that, the Kiwi pair can aim for the mid-June high around 0.6395. However, the 0.6400 threshold and upper line of the stated channel, around 0.6410 by the press time, could challenge the pair’s further advances.
Meanwhile, a downside move needs validation from the 38.2% Fibonacci retracement of June 16 to July 14 fall, around 0.6190. Following that, the NZDUSD bears can aim for the 23.6% Fibonacci retracement level surrounding 0.6140. In a case where the pair remains weak past 0.6140, it won’t hesitate to drag the quote towards the yearly low marked in July around 0.6060. Additionally, the south-run towards the 0.6000 psychological magnet becomes imminent in a case if the pair renews yearly low.
