NZD/USD Price Analysis: Mildly offered below 200-DMA, multi-day-old resistance line
- NZD/USD remains on the back foot after positing the heaviest daily fall in a week.
- Failures to cross the key DMA, resistance line favors sellers.
- 100-DMA restricts immediate downside, monthly high adds to the upside filters.
NZD/USD holds onto the previous day’s downbeat performance below 0.7100, down 0.12% intraday around 0.7090 during Wednesday’s Asian session.
In doing so, the kiwi pair justifies the monthly failures to cross a downward sloping trend line from February 25 as well as the recent downside break of the 200-DMA amid a descending RSI line.
Hence, the 100-DMA level of 0.7077 acts as imminent support ahead of directing the NZD/USD sellers towards the multiple support area surrounding 0.7050-45.
However, the quote’s weakness past 0.7045 makes it vulnerable to retest the 0.7000 threshold and aim for March’s low near 0.6945.
Alternatively, 200-DMA and the stated resistance line, respectively around 0.7120 and 0.7135, challenge short-term NZD/USD upside before the monthly top near 0.7171.
Should the kiwi pair buyers manage to keep controls past 0.7171, the 0.7200 round figure and 61.8% Fibonacci retracement of February-August downside near 0.7215 will be in focus.
NZD/USD: Daily 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.
