NZD/USD Technical Analysis: On the defensive at 7.5-week lows

NZD/USD is currently trading just 10 pips above the 7.5-week low of 0.6718 hit on Friday. The pair has found acceptance above the 200-day moving average (MA) for the first time since Feb. 13 and is looking south, according to technical charts.

Daily chart

• The pair closed below the crucial 200-day MA on Friday, reinforcing the bearish view put forward by the triangle breakdown witnessed on a preceding day.
• The 14-day relative strength index (RSI) is also biased bearish, having taken out the support at 42.00 last week.
• The 5- and 10-day MAs are also trending south, indicating a bearish setup.
• The spot, therefore, could soon test the psychological support at 0.67 and may possibly break lower.
• The bearish view would be invalidated if and when the pair closes above the 10-day MA, currently at 0.6783.

Trend: Bearish