NZD/USD Price Analysis: Drops back towards 100-DMA support near 0.6320
- NZD/USD extends pullback from a four-month-old resistance line.
- RSI’s retreat, softer MACD signals also keep sellers hopeful.
- Monthly support line, 50-DMA can challenge bears below 100-DMA.
NZD/USD takes offers to refresh intraday low around 0.6350 as it extends the previous day’s pullback towards the 100-DMA during Tuesday’s Asian session.
In addition to the Kiwi pair’s U-turn from the downward sloping resistance line from late April, around 0.6455 by the press time, recently easing RSI (14) and receding bullish bias of the MACD also favor the latest south-run.
It’s worth noting, however, that the NZD/USD weakness past the 100-DMA support of 0.6320 appears difficult as an upward sloping support line from mid-July, near 0.6260, will precede the 50-DMA level of 0.6244 to challenge the bears.
If at all, the NZD/USD prices remain weak past 0.6244, May’s low around 0.6175 and multiple levels marked near the 0.6100 threshold please the sellers.
On the contrary, recovery remains elusive beneath the aforementioned resistance line, close to 0.6455 at the latest.
Even so, the monthly high near 0.6470 and a horizontal area including highs marked since May, surrounding 0.6570-75, will be crucial to watch for the NZD/USD bulls.
NZD/USD: Daily chart
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Trend: Further weakness 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.
