- NZD/USD off multi-week highs near 0.7280 on Friday.
- Bears challenge the key support near 0.7220.
- Neutral MACD tilts in favor of the downside momentum
The NZD/USD pair came under strong bearish pressure on Thursday and dropped to its lowest level in the previous two sessions at 0.7220. Although the pair managed to erase a small portion of its daily losses in the Asian session, it was last seen gaining 0.01% on the day at 0.7246. The consolidation in prices happens following the below forecasts Chinese Manufacturing PMI.
NZD/USD daily chart
-637553490005498356.png)
On the daily chart, the pair has been consolidating gains while managing to defend the lower levels near 0.7240. The formation of Doji candlesticks along with the descending trendline from Thursday’s high near 0.7290 act a strong wall of resistance for the price to cross over, thus giving an expression that bears could have an edge in conquering the trade.
The price is taking support near the 20-hour simple moving average(SMA) placed at 0.7246. If the price breaks below, then the first stop would appear at 0.7230 horizontal support zone and next it will keep an eye for 0.7210. The receding Moving Average Convergence Divergence (MACD) suggests prices could test April 28 lows in the vicinity of 0.7180.
On the flip slide, if the price barges above the downward sloping line and sustains above it then the first upside hurdle would emerge near the 0.7265 horizontal resistance zone. Moving higher it could touch Thursday’s high near 0.7290, and then early March highs at 0.7305.
NZD/USD additional technical level
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
AUD/USD extends its upside above 0.6600, eyes on RBA rate decision
The AUD/USD pair extends its upside around 0.6610 during the Asian session on Monday. The downbeat US employment data for April has exerted some selling pressure on the US Dollar across the board. Investors will closely monitor the Reserve Bank of Australia interest rate decision on Tuesday.
EUR/USD: Optimism prevailed, hurting US Dollar demand
The EUR/USD pair advanced for a third consecutive week, accumulating a measly 160 pips in that period. The pair trades around 1.0760 ahead of the close after tumultuous headlines failed to trigger a clear directional path.
Gold bears take action on mixed signals from US economy
Gold price fell more than 2% for the second consecutive week, erased a small portion of its losses but finally came under renewed bearish pressure. The near-term technical outlook points to a loss of bullish momentum as the market focus shifts to Fedspeak.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.