Prods golden Fibonacci ratio to refresh YTD low near 0.5900

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• NZD/USD takes offers to refresh yearly low during eight-day downtrend.
• Oversold RSI, key technical levels can challenge Kiwi bears.
• Corrective bounce can aim for May’s bottom but remains elusive below 0.6045.

NZD/USD bears keep the reins for the eighth consecutive day as they refresh the yearly low to 0.5902 amid early Thursday.

In doing so, the Kiwi pair justifies the previous week’s downside break of the 0.5985 support comprising May’s low while poking the 61.8% Fibonacci retracement of October 2022 to February 2023 upside, near 0.5900 by the press time, also known as the golden Fibonacci ratio.

It’s worth noting, however, that the RSI (14) line hits the oversold territory and joins the key Fibonacci support around 0.5900 to challenge the NZD/USD bears.

Also acting as a downside filter is a descending support line from early March, close to 0.5885 by the press time.

In a case where the Kiwi pair drops below 0.5885, the early October swing high near 0.5815 may act as the final defense of the bulls.

Alternatively, an upside clearance of the support-turned-resistance line surrounding 0.5985, closely followed by the 0.6000 psychological magnet, becomes necessary for the NZD/USD buyers to return to the desk.

Even so, a downward-sloping resistance line from July 14, around 0.6045 at the latest, can challenge the run-up before pushing back the bears.

NZD/USD: Daily chart

Trend: Limited downside expected