NZD/USD Price Analysis: 200-SMA challenges bears amid oversold RSI

NZD/USD Price Analysis: 200-SMA challenges bears amid oversold RSI

NZD/USD remains pressured around monthly low, retreats of late.

Oversold RSI, key SMA support hints at a corrective pullback towards short-term resistance line, bears have a bumpy road ahead.

NZD/USD sellers attack the key support around 0.7025 while refreshing Septembers low during early Monday.

Although a three-day-old descending trend line portrays the pairs immediate downtrend, 200-SMA challenges the bears amid oversold RSI conditions.

Hence, a short-covering move towards the stated resistance line near 0.7060 cant be ruled out. However, any further upside needs to cross the 0.7080 hurdle to convince the NZD/USD buyers.

Following that, the 0.7100 round figure and the monthly high near 0.7170 will be in focus.

On the flip side, a clear break of 200-SMA level near 0.7025 will direct NZD/USD sellers toward a horizontal area established since August 25, surrounding 0.6990-85.

In a case where the pair bears refrain from stepping back and conquer the 0.6985 support, a one-month-old region close to 0.6930 will be in focus.

Overall, NZD/USD remains on the back foot but the odds of a corrective pullback seem brighter.