NZD/USD Price Analysis: Bears attack critical support near 0.6940
- NZD/USD remains under pressure in the Asian trading hours.
- More downside envisioned for pair if price decisively breaks 0.6960.
- Momentum oscillator holds onto the oversold zone with negative bias.
NZD/USD extends the previous day's losses on Friday. The pair started the fresh month of trading on a lower note.
At the time of writing, NZD/USD is trading at 0.6962, down 0.19% for the day.
NZD/USD daily chart
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Technically speaking, after breaking 0,7150 on June 15, the NZD/USD pair has been under consistent selling pressure. The price hovers in a trading range last seen in late March until it breaks the range on April 14 to test the high of 0.7317 on May 26.
That said, If NZD/USD sustained below 0.6960, it could find the first support near the June 21 low in the vicinity of the 0.6935 area.
The Moving Average Convergence Divergence (MACD) indicator trades in an oversold zone. Any downtick in the MACD could trigger more selling opportunities in the pair. The bears would see the levels last seen in 2020.
NZD/USD would test the low of 0.6914 made on November 24, 2020. The price will then breach the 0.6900 mark to read November 18, 2020 low at 0.6875.
Alternatively, if price moves higher, it will first locate the upside target at the 0.7000 horizontal resistance level followed by the June 29 high at 0.7052.
Next, the market participants would be encouraged to take over the 0.7090 horizontal resistance level.
NZD/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
