NZD/USD Price Analysis: Drops back to revisit support confluence around 0.7220

NZD/USD snaps three-day winning streak to retest 50-day SMA, 12-week-old previous support.
Normal RSI, recovery from 38.2% Fibonacci retracement favor bulls.

Anil Panchal FXStreet

NZD/USD alternates gains with losses, drops 0.18% to 0.7217, during early Friday. The kiwi pair initially rose towards the weekly top before taking a U-turn from 0.7234. In doing so, the quote wavers around the previous support line from late December 2020 and 50-day SMA.

However, the absence of extreme RSI conditions and the pair’s sustained recovery moves from 38.2% Fibonacci retracement of September 2020 to February 2021 upside, around 0.7100, keeps the NZD/USD buyers hopeful.

As a result, the prices are likely to aim for an ascending trend line from early November 2020, at 0.7280 now, during the fresh run-up.

If at all the NZD/USD bulls keep the reins past-0.7280, the monthly peak and January tops near 0.7310-15 will be the key hurdle to watch.

On the downside, a daily closing below 38.2% Fibonacci retracement level of 0.7100 will eye the December 2020 low near the 0.7000 threshold but further declines may find it tough to break the key Fibonacci retracement levels around 0.6990 and 0.6875.

Overall, NZD/USD remains in the uptrend but intermediate pullbacks can’t be ruled out.

NZD/USD daily chart

Trend: Bullish

Additional important levels

Overview
Today last price	0.7217
Today Daily Change	-13 pips
Today Daily Change %	-0.18%
Today daily open	0.723

Trends
Daily SMA20	0.7248
Daily SMA50	0.7207
Daily SMA100	0.7078
Daily SMA200	0.6835

Levels
Previous Daily High	0.7241
Previous Daily Low	0.7168
Previous Weekly High	0.7308
Previous Weekly Low	0.7099
Previous Monthly High	0.7466
Previous Monthly Low	0.7135
Daily Fibonacci 38.2%	0.7213
Daily Fibonacci 61.8%	0.7196
Daily Pivot Point S1	0.7185
Daily Pivot Point S2	0.714
Daily Pivot Point S3	0.7112
Daily Pivot Point R1	0.7258
Daily Pivot Point R2	0.7286
Daily Pivot Point R3	0.7331

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.

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