NZD/USD Price Analysis: Further selling hinges on 0.7000 break
- NZD/USD stays offered around intraday low, extends previous day’s pullback.
- Three-week-old rising trend line, key SMAs challenge the pair’s further downside.
- Last week’s top can entertain short-term buyers during corrective pullback.
Despite recently bouncing off an intraday low of 0.7007, NZD/USD remains pressured during early Tuesday.
The kiwi pair’s latest bounce could be linked to the failures to conquer a confluence of 100-SMA and an ascending trend line from July 28, near 0.7005.
Even if the pair manages to break the 0.7005 support, the 0.7000 round figure and 200-SMA near 0.6995 challenge the NZD/USD sellers before directing them to the monthly low near 0.6950.
On the contrary, the quote’s rebound needs to cross the previous week’s top surrounding 0.7065 to aim for the 0.7100 threshold.
During the rise, the early August tops surrounding 0.7075 and 0.7090 may offer intermediate halts whereas July’s peak of 0.7106 can act as an extra filter to the north.
Overall, NZD/USD grinds lower but is near to the key support and hence needs a strong catalyst to conquer the same.
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.
