NZD/USD - Oversold technical conditions offer respite

• NZD/USD 14-day RSI is most oversold since July 2015.
• 0.6820 (23.6% Fib R of 2014 high/2015 low) capping downside in the pair.

The NZD/USD pair clocked a low of 0.6818 earlier today before trimming losses to trade around 0.6838 levels.

The oversold conditions on the daily chart - 14-day RSI oversold, the bearish move looks overstretched as suggested by the big gap between the price and the 10-day moving average (MA).

However, the corrective move is unlikely to gather traction, given the strong bid tone around the US dollar. Still, a 100-pip move higher cannot be ruled out if the USprelimoinary Q3 GDP data due at 12:30 GMT today shows a sharp slowdown in the economy.

NZD/USD Technical Levels

The immediate resistance is seen at 0.6869 (1-hour 50-MA), which, if breached, would expose 0.6886 (5-day MA) and 0.6904 (Oct. 26 high on 1-hour chart). On the downside, breach of support at 0.6820 (23.6% Fib) would open doors for 0.6759 (Apr. 2016 low) and 0.6675 (May 2016 low).