NZD/USD Price Analysis: Slides below ascending channel/100-hour SMA confluence support

NZD/USD edged lower on Friday and retreated further from multi-year tops set on Thursday.
Slide below the 0.7050 confluence support might have set the stage for additional weakness.

Haresh Menghani FXStreet

The NZD/USD pair witnessed some profit-taking on Friday and extended the previous day's retracement slide from the highest level since April 2018 – levels just above the 0.7100 mark. The pullback extended through the first half of the European trading session and dragged the pair below mid-0.7000s or two-day lows in the last hour.

With the latest leg down, the NZD/USD pair has now broken through a confluence support comprising of 100-hour SMA and the lower boundary of a near two-week-old ascending trend-channel. A short-term bearish breakdown is further reinforced by the fact that technical indicators have been gaining negative traction on hourly charts.

Moreover, oscillators on the daily chart are still holding in the overbought territory. The technical set-up supports prospects for an extension of the ongoing corrective slide, possibly towards testing the key 0.7000 psychological mark. That said, a softer tone surrounding the USD might help limit deeper losses ahead of the NFP report.

On the flip side, the 0.7060-70 congestion zone now seems to act as immediate resistance. A sustained strength above should assist the NZD/USD pair to make a fresh attempt to build on its recent positive momentum beyond the 0.7100 mark. The latter coincides with the trend-channel resistance and should act a key pivotal point for short-term traders.

NZD/USD 1-hourly chart

Technical levels to watch

NZD/USD

Overview
Today last price	0.7047
Today Daily Change	-0.0027
Today Daily Change %	-0.38
Today daily open	0.7074

Trends
Daily SMA20	0.6937
Daily SMA50	0.6755
Daily SMA100	0.6698
Daily SMA200	0.6448

Levels
Previous Daily High	0.7104
Previous Daily Low	0.7051
Previous Weekly High	0.704
Previous Weekly Low	0.6897
Previous Monthly High	0.7052
Previous Monthly Low	0.6589
Daily Fibonacci 38.2%	0.7084
Daily Fibonacci 61.8%	0.7071
Daily Pivot Point S1	0.7049
Daily Pivot Point S2	0.7023
Daily Pivot Point S3	0.6995
Daily Pivot Point R1	0.7102
Daily Pivot Point R2	0.713
Daily Pivot Point R3	0.7155

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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