NZD/USD Price analysis: Extends pullback from key resistance towards 0.6400 on softer China statistics


  • NZD/USD takes offers to renew intraday low, snaps three-day downtrend while reversing from a two-month high.
  • China’s growth of Retail Sales, Industrial Production eased in July.
  • Previous resistance line from early July restricts immediate downside, 200-DMA appears a tough nut to crack for bulls.
  • RSI hints at a pullback, MACD suggests limited downside room.

NZD/USD bulls retreat after China flashed downbeat statistics for July during Monday’s Asian session. That said, the Kiwi pair renews its intraday low near 0.6430 by the press time.

China’s Retail Sales eased to 2.7% YoY in July versus 5.0% expected and 3.1% prior whereas Industrial Production (IP) edged lower to 3.8% during the stated month, from 3.9% prior and 4.6% market forecasts.

With the downbeat data from the world’s biggest commodity user, NZD/USD portrayed the much-awaited pullback from the downward sloping resistance line from April 26, around 0.6465 at the latest. The Kiwi pair’s latest losses also justify the RSI retreat from the nearly overbought territory.

However, an upward sloping previous resistance line from July 08, close to 0.6420 by the press time, restricts the immediate downside of the NZD/USD pair.

In a case where the quote drops below 0.6420, the 0.6400 round figure and 100-DMA support near 0.6325 will gain the bear’s attention.

On the contrary, recovery moves need to cross the aforementioned resistance line near 0.6465 to recall the NZD/USD buyers.

Following that, 50% Fibonacci retracement of the April-July downside and the 200-DMA, respectively near 0.6530 and 0.6545, will be in focus.

NZD/USD: Daily chart

Trend: Limited weakness expected

Additional important levels

Overview
Today last price 0.6435
Today Daily Change -0.0007
Today Daily Change % -0.11%
Today daily open 0.6442
 
Trends
Daily SMA20 0.6283
Daily SMA50 0.6272
Daily SMA100 0.6442
Daily SMA200 0.6622
 
Levels
Previous Daily High 0.647
Previous Daily Low 0.6418
Previous Weekly High 0.647
Previous Weekly Low 0.6228
Previous Monthly High 0.633
Previous Monthly Low 0.6061
Daily Fibonacci 38.2% 0.645
Daily Fibonacci 61.8% 0.6438
Daily Pivot Point S1 0.6417
Daily Pivot Point S2 0.6392
Daily Pivot Point S3 0.6365
Daily Pivot Point R1 0.6468
Daily Pivot Point R2 0.6495
Daily Pivot Point R3 0.652

 

 

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