NZD/USD technical analysis: Bears challenge ascending trend-line/50-DMA confluence support

• The NZD/USD pair remained heavily offered on the last trading day of the week and dropped to fresh 2-1/2 week lows, farther below mid-0.6600s.
• The pair has now slipped below 50% Fibo. level of the 0.6487-0.6792 recent up-move and closer to over one-month-old ascending trend-line support.

The overnight breakthrough a confluence region - comprising of 100-day SMA and 38.2% Fibo. level, was seen as a key trigger for bearish traders and a follow-through selling on the last trading day of the week. 

Meanwhile, technical indicators on the daily chart have just started gaining negative momentum and support prospects for an eventual bearish break through the ascending trend-line - coinciding with 50-day SMA.

However, oscillators on hourly charts are already flashing oversold conditions and hence, traders are likely to wait for a sustained break through the said support before positioning for any further near-term slide.

Failure to defend the confluence support might now turn the pair vulnerable to head towards challenging the 0.6600 round figure mark before eventually dropping to its next support near the 0.6555-50 region.

NZD/USD daily chart