- The NZD / USD faces rejection above the 50 SMA and dips below 0.6950 during the Asian session on Thursday.
- The bears are now targeting the demand zone at the 21 SMA.
- The RSI has crossed the middle line to the downside.
NZD / USD sellers returned on Thursday after a temporary turn to the upside encountered stiff resistance near the 0.6975 region.
As seen on the 4-hour chart, the NZD / USD is moving lower to test the bearishly sloping 21-period SMA at 0.6942, after failing to find acceptance above the 50 SMA at 0.6973.
The RSI has turned bearish in said time period after falling below the midline. The indicator now stands at 49.
A firm break below the 21 SMA could trigger a quick slide towards the 0.6900 level, below which the eight-month lows of 0.6881 could be targeted.
NZD / USD 4 hour chart
On the upside, a close above the 50 SMA barrier may point to the downtrend SMA 100 at 0.6986.
Higher up, the psychological level of 0.7000 will be the level to beat for the NZD / USD bulls.