NZD/USD has failed to sustain the upside above 0.5800. While below 0.6010/0.6060, the downtrend is set to persist, economists at Société Générale report.

50-day moving average near 0.6010/0.6060 to be an important hurdle near-term

“NZD/USD recently formed an interim low near the lower limit of a multi-month down sloping channel at 0.5565 which is also a trend line drawn since 2009.” 

“An initial bounce is taking shape; the 50 DMA near 0.6010/0.6060 which is also the low of July is expected to be an important hurdle near-term. Failure to overcome this resistance can lead to continuation in downtrend towards last month trough of 0.5565 and 2020 levels of 0.5495/0.5470.”