NZD/USD Price Analysis: Off monthly horizontal support but not out of woods
|- NZD/USD struggles to keep first intraday gains in three.
- Downside break of two-week-old trend line, 21-DMA favor sellers amid steady RSI, MACD retreat.
- Horizontal area from late September appears a tough nut to crack for bulls, 61.8% FE eyed by bears.
NZD/USD portrays a corrective pullback from short-term key support to 0.6750, up 0.12% intraday during early Friday.
In doing so, the Kiwi pair snaps a two-day downtrend near a fortnight low but stays on course to print the first weekly loss in three.
It should be noted, however, that a clear downside break of 21-DMA and a two-week-old ascending trend line joins descending RSI line, as well as receding bullish bias of the MACD, to keep NZD/USD sellers hopeful to break the immediate support zone near 0.6735-40.
Following that, the year 2021 bottom surrounding the 0.7000 threshold and 61.8% Fibonacci Expansion (FE) of the pair’s moves between November 15 and December 24, around 0.6650 will be in focus.
Alternatively, the support-turned-resistance line near 0.6775 will precede the 21-DMA level surrounding 0.6790 to limit short-term advances of the NZD/USD prices.
If the NZD/USD buyers manage to cross the 0.6790 hurdle, a 14-week-old horizontal area surrounding 0.6855-60 will challenge the NZD/USD bulls.
NZD/USD: Daily chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.