NZD/USD Technical Analysis: Hits 3.5-week low, nears six-month ascending trendline

NZD/USD is currently trading at 0.6773, the lowest level since March 8, representing a 0.43 percent drop on the day.

More importantly, the pair is now trading within a striking distance of the support at 0.6767 - the trendline connecting Oct. 8 and Jan. 3 lows.

A close below the trendline looks likely as the 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print and both the 5- and 10-day moving averages (MAs) are trending south.

That said, a break below the trendline support could be short-lived if prices bounce up from the 200-day MA, currently at 0.6739. That average line had reversed pullbacks in February and March.

Daily chart

Trend: Bearish