NZD/USD has been consolidating in October and November, even though it maintained a bearish bias. The daily chart shows that the bearish technical conditions are maintained based on price action, moving averages, and the RSI. (NZD/USD Daily Chart 12/8; click to enlarge) Pullback Resistance: Now, price looks poised to test the 0.76 handle. The market is still bearish, but has gotten choppy since October, so we might expect another choppy rebound after the current bearish continuation signal. If so, we should expect resistance around 0.78. If price can hold below 0.78, forgiving some brief violations, then the market is still bearish. 2012-Low in Sight: NZD/USD has room to fall until the 2012-low around 0.7453. The weekly chart shows that price in October and November essentially stalled above the 2013-lows around 0.7687. Therefore, we should expect support in the 0.7450-0.75 area, especially if the daily and weekly RSIs are below 30. Reason for Support: Also, note that the prevailing trend since 2009's 0.4875 low has been bullish even though it has turned choppy. This year's downswing has been the strongest since 2009, and might very well be the start of a long-term downtrend. However, in the medium-term, because it is going against the trend since 2009, we should expect buyers around the combination of key support (2012-lows) and oversold conditions (daily and weekly RSI below 30). (NZD/USD Weekly Chart; click to enlarge)