NZD/USD Price Analysis: Sellers break weekly support line to attack 0.6700

NZD/USD snaps four-day winning streak after RBNZ comments.
MACD turns the most bearish in a week as sellers dominate below the key Fibonacci retracement levels.
200-bar SMA on the bears’ radar, 0.6800 can lure the bulls during the fresh rise.

Anil Panchal FXStreet

NZD/USD drops to 0.6693, down 0.58% intraday, after RBNZ’s stress test conveyed the severity of coronavirus (COVID-19) led economic conditions during early Thursday. In doing so, the pair broke an ascending trend line from September 08 while slipping below 61.8% and 50% of the Fibonacci retracement of September 02-08 downside.

Read: Banks stress test outcome reinforces need tor strong capital buffers - RBNZ

As a result, the sellers are preparing to revisit a 200-bar SMA level of 0.6637 before targeting the monthly low near 0.6600.

However, an extended break of the trend line, at 0.6689 now, becomes necessary to confirm NZD/USD weakness.

Meanwhile, the key Fibonacci retracement levels can offer immediate resistances around 0.6695 and 0.6720 ahead of the recent high near 0.6760.

Though, any further upside past-0.6760 will depends upon how well the bulls manage to cross the monthly high of 0.6790 and remain strong beyond the 0.6800 threshold.

NZD/USD four-hour chart

Trend: Bearish

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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