NZD/USD Price Analysis: Pullback remains elusive beyond 0.6230

NZD/USD retreats from a four-month high, snaps three-day uptrend after refreshing multi-day top.
61.8% Fibonacci retracement level probes buyers amid overbought RSI.
Convergence of 200-DMA, monthly support line restricts immediate downside.

Anil Panchal FXStreet

NZD/USD pares recent gains at the highest levels since early August as it prints mild losses around 0.6365 during early Friday.

In doing so, the Kiwi pair retreats from the 61.8% Fibonacci retracement level of the pair’s April-October moves, near 0.6460, amid the overbought RSI (14).

That said, the 50% Fibonacci retracement level near 0.6275 lures intraday sellers before highlighting the 0.6230 support confluence, encompassing the 200-DMA and a one-month-old ascending trend line.

Should the quote remains bearish past 0.6230, the odds of witnessing a south-run towards the previous resistance line from early April, near 0.6090, can’t be ruled out.

Alternatively, a daily closing beyond the 61.8% Fibonacci retracement level surrounding 0.6460, also known as the golden ratio, becomes necessary for the NZD/USD buyer’s return.

Following that, a horizontal area around 0.6570 including the tops marked in May and June will be crucial to watch as a break which could give a free hand to the bulls targeting March’s low near 0.6730.

Overall, NZD/USD is likely to decline further but the downside appears limited.

NZD/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	0.6368
Today Daily Change	-0.0006
Today Daily Change %	-0.09%
Today daily open	0.6374

Trends
Daily SMA20	0.6131
Daily SMA50	0.5873
Daily SMA100	0.6025
Daily SMA200	0.6292

Levels
Previous Daily High	0.64
Previous Daily Low	0.6233
Previous Weekly High	0.629
Previous Weekly Low	0.6087
Previous Monthly High	0.6314
Previous Monthly Low	0.5741
Daily Fibonacci 38.2%	0.6336
Daily Fibonacci 61.8%	0.6297
Daily Pivot Point S1	0.6271
Daily Pivot Point S2	0.6168
Daily Pivot Point S3	0.6103
Daily Pivot Point R1	0.6439
Daily Pivot Point R2	0.6503
Daily Pivot Point R3	0.6606

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.

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