NZD/USD Price Analysis: Sellers attack 0.7000 support confluence
- NZD/USD drops back to 200-SMA, 12-day-old support line.
- Downbeat RSI, Momentum lines join failures to cross horizontal area from late June favor bears.
- Weekly falling trend line adds to the upside filters.
NZD/USD takes offers around 0.6996, down 0.10% intraday, amid early Friday. In doing so, the kiwi pair fades the previous day’s bounce off 200-SMA as sellers battle the key support convergence including the stated moving average and an ascending support line from July 28.
Given the downward sloping RSI line, not oversold, joining the weak Momentum, not to forget the pair’s failures to rise past a seven-week-old horizontal resistance during the last week, NZD/USD sellers seem to have an upper hand.
Hence, a clear downside break of the 0.7000 confluence will quickly drag the quote to refresh the weekly low, around 0.6968 by the press time.
It should be noted, however, the 0.6920 and July’s low near 0.6880 can challenge NZD/USD bears afterward.
Alternatively, the corrective pullback may remain less important until staying below a one-week-long falling resistance line, around 0.7055.
Even so, NZD/USD bulls remain skeptical of the pair’s further unless witnessing clear trading beyond the stated multi-day-old horizontal area surrounding 0.7090–7100.
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.
