- 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
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
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.