NZD/USD Price Analysis: Slips below 100-hour SMA/ascending trend-line confluence support
- NZD/USD witnessed some profit-taking on Thursday and moved away from near two-year tops.
- Bullish oscillators on the daily chart support prospects for the emergence of some dip-buying.
- A sustained break below the 0.6800 mark is needed to negate the positive outlook for the major.
The NZD/USD pair witnessed some profit-taking on Thursday and slipped below the 0.6900 round-figure mark during the first half of the European traction session.
The pair has now erased the previous day's positive move to the highest level since December 2018 and was last seen hovering near the 0.6885 confluence support. The mentioned region comprises of 100-hour SMA and weekly ascending trend-line support.
A convincing breakthrough might prompt some additional long-unwinding trade and prolong the ongoing corrective slide. The NZD/USD pair might then accelerate the fall towards the 0.6840 horizontal level en-route the 0.6810-0.6800 support zone.
Meanwhile, technical indicators on the 1-hourly chart have been gaining negative traction and support prospects for additional weakness. However, oscillators on the daily chart maintained their bullish bias and have also eased from overbought territory.
Hence, any meaningful slide below the mentioned confluence support might still be seen as a buying opportunity and remain limited. The NZD/USD pair still seems poised to extend its appreciating move and aim towards reclaiming the key 0.7000 psychological mark.
That said, a sustained break below the 0.6800 mark will negate the bullish outlook, rather trigger some short-term trading stops and set the stage for an additional near-term downfall.
NZD/USD 1-hourly chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
