NZD/USD Price Analysis: Mildly offered below 200-DMA, multi-day-old resistance line

  • NZD/USD remains on the back foot after positing the heaviest daily fall in a week.
  • Failures to cross the key DMA, resistance line favors sellers.
  • 100-DMA restricts immediate downside, monthly high adds to the upside filters.

NZD/USD holds onto the previous day’s downbeat performance below 0.7100, down 0.12% intraday around 0.7090 during Wednesday’s Asian session.

In doing so, the kiwi pair justifies the monthly failures to cross a downward sloping trend line from February 25 as well as the recent downside break of the 200-DMA amid a descending RSI line.

Hence, the 100-DMA level of 0.7077 acts as imminent support ahead of directing the NZD/USD sellers towards the multiple support area surrounding 0.7050-45.

However, the quote’s weakness past 0.7045 makes it vulnerable to retest the 0.7000 threshold and aim for March’s low near 0.6945.

Alternatively, 200-DMA and the stated resistance line, respectively around 0.7120 and 0.7135, challenge short-term NZD/USD upside before the monthly top near 0.7171.

Should the kiwi pair buyers manage to keep controls past 0.7171, the 0.7200 round figure and 61.8% Fibonacci retracement of February-August downside near 0.7215 will be in focus.

NZD/USD: Daily chart

Trend: Further weakness expected

Source

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