NZD/USD Price Analysis: Bears await 0.6960 breakdown for fresh entries
- NZD/USD snaps two-day uptrend, keeps bounce off intraday low.
- Seven-week-old resistance line, 200-SMA guards immediate upside.
- Weekly rising channel, upbeat Momentum keeps buyers hopeful.
NZD/USD pares intraday losses around 0.7000, down 0.15% on a day, as Asian traders prepare for an end to Tuesday’s lackluster start.
The quote’s early-week recovery failed to cross a downward sloping trend line from June 08, not to forget marking a reversal from 200-SMA.
Even so, a firmer Momentum line and a one-week-old rising trend channel challenge the NZD/USD sellers until witnessing a clear break of 0.6960, comprising the channel’s support.
Following that, the 0.6920, the 0.6900 and monthly low near 0.6880 could entertain the pair bears before directing them to September 2020 tops near 0.6800.
Meanwhile, an upside break of the multi-day-old resistance line near 0.7010 will be challenged by the 200-SMA level of 0.7015 and the upper line of the stated channel surrounding 0.7030.
It’s worth noting that the mid-July tops surrounding 0.7045-50 act as extra hurdles to the NZD/USD pair’s north-run.
NZD/USD: Four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
