NZD/USD Price Analysis: Retreats from previous support below 0.6300

• NZD/USD holds lower ground during the four-day downtrend, fades initial corrective pullback.
• Nearly oversold RSI, multiple supports to challenge bears.
• Bulls have a bumpy road to return unless crossing 0.6335-40 area.

NZD/USD remains on the back foot, despite marking a corrective pullback after the Fed Minutes, as it prints the four-day downtrend. In doing so, the Kiwi pair seesaws around the lowest levels in eight days, recently easing to 0.6275 during Thursday’s Asian session.

The kiwi pair’s latest weakness could be linked to the quote’s failure to cross the previous support line from mid-July, around 0.6290 by the press time. However, nearly oversold RSI (14) challenges the NZD/USD bears of late.

With this, the 200-SMA and a four-week-old support line, respectively near 0.6250 and 0.6235, gain the NZD/USD seller’s attention.

Following that, a downward trajectory towards a late July swing low near 0.6190 can’t be ruled out.

Alternatively, the support-turned-resistance near 0.6290 guards the Kiwi pair’s immediate upside.

Also acting as a short-term upside hurdle is the convergence of the 100-SMA and 38.2% Fibonacci retracement level, around 0.6315.

It should be noted that a downward sloping resistance line from August 12, close to 0.6335-40, appears the last defense of the NZD/USD bears.

NZD/USD: Four-hour chart

Trend: Further weakness expected