NZD/USD Price Analysis: Extends pullback from 100-SMA towards 0.6600
- NZD/USD drops to one-week low during three-day downtrend.
- Clear break of two-week-old support line, U-turn from key SMAs keep sellers hopeful.
- 200-SMA, February’s top adds to the upside filters.
NZD/USD extends the previous two-day downtrend towards 0.6600 during Monday’s Asian session.
That said, the Kiwi pair takes offers to refresh one-week low around 0.6625, down 0.25% intraday, by the press time.
The quote broke an ascending trend line from January 28 the previous day while extending the February 10 pullback from 200-SMA.
The corrective pullback portrayed during the early Asian session failed to cross the 100-SMA level, needless to mention the support-turned-resistance and 200-SMA, which in turn joins bearish MACD signals to keep NZD/USD sellers hopeful.
During the pair’s further weakness the 0.6600 threshold may act as short-term support before the monthly low of 0.6589.
In a case where NZD/USD bears keep reins past 0.6589, January’s bottom surrounding 0.6530 will be in focus.
Alternatively, the 100-SMA and previous support line, respectively around 0.6645 and 0.6660, will restrict the short-term recovery moves of the pair.
Following that, the 200-SMA and the monthly high, near 0.6720 and 0.6735 in that order, will be crucial to watch for NZD/USD bulls.
NZD/USD: Four-hour chart
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.
