Despite experiencing some slight intraday gains around 0.6080, NZD/USD maintains a bearish outlook as it heads into the European session on Thursday.
The recent decline of the Kiwi pair below an upward support line that originated on May 31, which now acts as immediate resistance at approximately 0.6140, supports the bearish sentiment. Additionally, the bearish signals from the MACD indicator and the consistent trading below the 21-day Exponential Moving Average (EMA) at around 0.6145 further reinforce the downside bias.
As a result, NZD/USD bears are poised to test the 50% Fibonacci retracement level of the upward movement from October to February, situated near 0.6030.
Subsequently, the pair sellers may encounter challenges from the monthly low at approximately 0.5985 and the 61.8% Fibonacci retracement level around 0.5900. It is important to note that the psychological level of 0.6000 acts as a significant downside barrier.
On the other hand, the recovery of NZD/USD remains uncertain unless the quote successfully surpasses the resistance confluence at 0.6140-45. This confluence comprises the 21-day EMA and the monthly support-turned-resistance line.
In the event that NZD/USD manages to overcome the hurdle at 0.6145, the 200-day EMA and the monthly high at 0.6220 and 0.6250, respectively, will become focal points of attention.
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