NZD/USD Price Analysis: Off lows by more than 250 pips

• NZD/USD has recovered sharply from session lows. 
• The pair is still trading under the 2020 descending trendline. 

The NZD/USD pair is currently trading near 0.6280, having hit a low of 0.6008 an hour ago. 

The flash crash in USD/JPY seen during the sixty minutes to 02:00 GMT weighed heavily over the NZD, pushing the NZD/USD pair down to lows near 0.60. That level was last seen in May 2009. The AUD/USD pair also took a beating during that one hour and fell to an 11-year low of 0.6314. 

However, despite the sharp recovery from session lows, it is still too early to call a bullish reversal in NZD/USD, as the pair is yet to take out the trendline falling from Dec. 31 and Jan. 24 highs. 

A close above that hurdle would put the bulls into the driver's seat and could yield rise to 0.6480, where the 200-day average is currently located. 

Should the bounce from session lows fade near 0.63, a fresh move lower toward 0.62 will likely be seen, as the risk-off tone in markets is showing no signs of weakening. 

Daily chart

Trend: Bearish

Technical levels