NZD/USD technical analysis: Oversold conditions helped find some support ahead of 0.6500 handle, remains vulnerable

   •  The NZD/USD pair finally broke down of its two-day-old consolidative trading range and tumbled to the 0.6500 neighbourhood during the mid-European session on Wednesday.

   •  Sustained weakness below 23.6% Fibo. level of the 0.6481-0.6560 recent corrective bounce - coinciding with 200-hour EMA, was seen as a key trigger for intraday bearish traders.

Meanwhile, technical indicators on the 1-hourly chart are already pointing slightly oversold conditions and seemed to be the only factor that helped find some support ahead of the key 0.6500 psychological mark - 61.8% Fibo. level.

However, oscillators on 4-hourly/daily charts maintained their bearish bias and are still far from being in the oversold territory, suggesting that any attempted recovery might still be seen as a selling opportunity amid persistent US-China trade tensions.

A follow-through selling would expose yearly lows support near the 0.6485-80 region before the pair extends the bearish trajectory and eventually drops to test Oct. 2018 swing lows, around the 0.6425 region.

NZD/USD 1-hourly chart