NZD/USD Price Analysis: Holds above 0.6220, Bear Cross eyed

• NZD/USD extends its downside for the sixth consecutive day.
• The 100-hour EMA is on the verge of crossing below the 200-hour EMA.
• The key support zone is located at 0.6200; the immediate resistance level is seen at 0.6285.

The NZD/USD pair currently trades around 0.6220 heading into the European session on Friday. The pair is under selling pressure for the sixth consecutive day amid the strength of the US Dollar. The possibility of a resumed hawkish stance from the Federal Reserve (Fed) following the Unemployment Claims report on Thursday boosts the US Dollar across the board and acts as a headwind for NZD/USD.

Looking at the one-hour chart, the key support zone is located at 0.6200, indicating a confluence of a psychological round mark and lower limit of a downward-sloping trend channel. Any meaningful follow-through selling below the latter will see a drop accelerate to 0.6180 (Low of July 12). In case the selling pressure remains, the pair would see the next level of contention at 0.6165 (Low of July 11) en route to 0.6130 (Low of July 6).

It’s worth noting that the 100-hour Exponential Moving Average (EMA) is on the verge of crossing below the 200-hour EMA. If a decisive crossover occurs on the one-hour chart, It would validate a Bear Cross, highlighting the path of least resistance for the cross is to the downside.

On the upside, the immediate resistance level is seen at 0.6285, portraying the upper boundary of a downward-sloping trend channel. A decisive break above the mentioned level would drive the pair towards 0.6300 (a psychological round mark, High of July 20), followed by 0.6345 (High of July 18). The additional upside filter appears at 0.6400.

However, further downside appears favorable as the Relative Strength Index (RSI) stands below 50, activating the bearish momentum for the NZD/USD pair.

NZD/USD one-hour chart