NZD/USD Price Analysis: Off monthly support above 0.6900 but bears not out of the woods
|- NZD/USD consolidates recent losses around yearly low, remains pressured though.
- Bearish MACD, sustained trading below 200-DMA keeps sellers hopeful.
- 61.8% Fibonacci Expansion on the bears’ radar, two-week-old resistance line guards immediate upside.
NZD/USD takes a U-turn from a one-month-old support line while picking up bids around 0.6910, down 0.07% intraday, amid early Tuesday. It should, however, be noted that a fortnight-old resistance line and bearish MACD signals keep favoring the sellers.
Hence, the latest corrective pullback should be considered less worrisome until staying below the short-term resistance line near 0.7015. Also, acting as an upside filter is 200-SMA surrounding 0.7050.
In a case where NZD/USD bulls cross the 0.7050 SMA hurdle, the monthly top close to 0.7105 may return to the charts.
Meanwhile, fresh declines will need to break the immediate support line near 0.6915 to aim for 61.8% Fibonacci Expansion (FE 61.8%) of the pair’s May-June declines, followed by a bounce until early July, close to 0.6860.
It’s worth mentioning that the NZD/USD bears’ dominance past 0.6860 won’t hesitate to challenge the September 2020 tops near 0.6800.
NZD/USD: Four-hour chart
Trend: Bearish
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