NZD/USD technical analysis: 5-day MA is capping upside

• NZD/USD's short-term averages have produced a bearish crossover. 
• The pair risks revisiting Wednesday's low of 0.6617.

NZD/USD is sidelined near 0.6648 at press time, having faced rejection at the descending 5-day moving average hurdle at 0.6658 a few minutes ago. 

Bear cross

The 5- and 10-day averages have produced a bear cross and indicate immediate bearish bias.

The pair's failure to take out the 5-day MA has validated the bear cross and shifted risk in favor of a drop to Wednesday's low below 0.6617.

The long upper and lower shadows attached to Wednesday's candle are telling a tale of indecision. So, acceptance under 0.6617 would mean the period of indecision has ended with a bearish breakdown and will likely yield a deeper drop to 0.6573 (support of trendline rising from Nov. 13 low). 

On the other hand, a daily close above Wednesday's high of 0.6672 would revive the bullish view and allow a re-test of the recent high of 0.6733.

Daily chart

Trend: Bearish

Technical levels