NZD/USD Price Analysis: Bears need validation from 0.6020 to refresh two-year low

• NZD/USD fades the previous day’s bounce off the lowest levels since May 2020.
• Impending bear cross on MACD, bearish Doji candlestick keep sellers hopeful.
• Convergence of two-week-old resistance line, 200-HMA challenges buyers.

NZD/USD remains pressured around mid-0.6000s heading into Thursday’s European session. In doing so, the Kiwi pair reverses the previous day’s recovery moves from the nearly 2.5-year low ahead of the all-important European Central Bank (ECB) Monetary Policy Meeting and Fed Chair Jerome Powell’s speech.

The quote’s latest weakness could well be linked to the bearish candlestick formation, called Doji, around the recent tops.

Also teasing NZD/USD bears is the looming bear cross of the MACD, as well as the RSI that struggles to extend the rebound from the oversold territory.

Even if the pair defy the bearish signals flashed by the Doji candlestick, by crossing the 0.6090 hurdle, a convergence of the 200-HMA and a downward sloping resistance line from August 25, close to the 0.6100 threshold challenges the upside momentum.

Following that, the weekly high near 0.6130 and Friday’s top surrounding 0.6140 could lure the NZD/USD buyers.

Alternatively, pullback moves need to break the immediate support line around 0.6020 to recall the bears and attack the 0.6000 psychological magnet.

Should the NZD/USD sellers keep reins past 0.6000, the 61.8% Fibonacci Expansion (FE) of August 30 to September 07 moves, near 0.5950, will gain the market’s attention.

NZD/USD: Hourly chart

Trend: Further weakness expected