NZD/USD Price Analysis: Bears challenge 23.6% Fibonacci retracement near 0.7240
- NZD/USD consolidates in the early Asian session.
- Pair retreats from the coveted 0.7300 mark on profit-taking.
- MACD is in overbought zone, signals stretched buying conditions.
The NZD/USD pair books modest losses on Thursday, following the previous day’s remarkable move. The pair zoomed from the lows of 0.7725 to touch the multi-month high near 0.7320, accumulating 90-pip movement.
At the time of writing, the NZD/USD pair is trading at 0.7278, down 0.05% on the day.
NZD/USD daily chart
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On the daily chart, the pair has been consolidating near the 0.7285 mark. The slight pullback from the recent highs could be considered as NZD/USD bull’s profit-taking. However, if price skids from the mentioned level, then the pullback could be extended further and reverse all prior gains.
The first area of support, in that case, would be the 23.6% Fibonacci retracement at 0.7240.
The Moving Average Convergence Divergence (MACD) indicator, trades in overbought territory with a bearish divergence. If MACD moves slightly lower, then it could trigger another round of selling pressure in the pair.
In doing so, the NZD/USD bears would be willing to retest the 0.7200 horizontal resistance level followed by the 50% Fibonacci retracement level at 0.7160.
Additionally, if price remained grounded near the 0.7280 mark, then it could try to recoup the previous day's high in the vicinity of 0.7320 area. This would encourage bulls to march toward the 0.7350 horizontal resistance level.
Further, the pair could dare to meet the late February's high at 0.7384.
NZD/USD Additioanl 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.
