• NZD/USD remains on the back foot inside a bearish chart pattern.
• Bears struggle after six-day downtrend amid sluggish RSI.
• 78.6% Fibonacci retracement can restrict immediate declines, buyers need validation from 200-SMA.

NZD/USD holds lower ground near 0.6170 during the initial hour of Tuesday’s European session as bears keep reins for the sixth consecutive day. In doing so, the Kiwi pair stays depressed inside a one-week-old descending trend channel.

However, sluggish MACD and RSI challenge the pair sellers as they approach the 78.6% Fibonacci retracement of July-August upside, near 0.6145.

Even if the quote declines below 0.6145, the lower line of the stated channel, at 0.6110, will precede the 0.6100 threshold and July’s bottom surrounding 0.6060 to challenge the NZD/USD bears.

In a case where the pair manage to remain on the seller’s radar past 0.6060, the 0.6000 psychological magnet will be in the focus of the market players.

On the flip side, recovery moves may initially aim for the 61.8% Fibonacci retracement level around 0.6215.

Following that, the aforementioned channel’s upper line, close to 0.6220, could test the NZD/USD buyers. Also acting as an upside hurdle is the 200-SMA level near 0.6250.

Overall, NZD/USD is in a bearish trend but the downside room is limited.

NZD/USD: Four-hour chart

Trend: Limited downside expected