NZD/USD technical analysis: 0.6686 holds the key to 200-day SMA

Break of 61.8% Fibonacci retracement portrays the NZD/USD pair’s strength.
Late-April top near 0.6686 continues to hold the gate for the rise to 200-day SMA.
50-day SMA acts as immediate support.

Anil Panchal FXStreet

A successful break of 61.8% Fibonacci retracement propels the NZD/USD pair to 15-day high as it trades near 0.6644 during early Tuesday.

While a sustained break of important Fibonacci retracement levels of late-2018 upside favors the buyers, the pair still needs to cross the current month high around 0.6682 and hold the strength beyond April-end tops around 0.6686 in order to aim for 200-day simple moving average (200-day SMA) level of 0.6710.

If 14-day relative strength index (RSI) refraining from raising any barriers for the pair’s upside past-0.6710, mid-April high at 0.6783 could be on the bulls’ watchlist.

Should prices fail to hold recent breakout, 50-day SMA level around 0.6590 acts as immediate support.

In a case where the quote keeps declining beneath 0.6590, May 27 high near 0.6560 and current month low near 0.6487 could gain market attention.

NZD/USD daily chart

Trend: Bullish

1. R3 0.6675
2. R2 0.6651
3. R1 0.6635
PP 0.6611
1. S1 0.6595
2. S2 0.6571
3. S3 0.6555

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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