NZD/USD technical analysis: Buyers step back from 0.6475/76 confluence after China data

China’s July month activity data disappoint Kiwi buyers.
The NZD/USD pair takes a U-turn from 23.6% Fibonacci retracement and three-week-old resistance-line.

Anil Panchal FXStreet

With China’s Industrial Production and Retail Sales lagging behind market consensus, NZD/USD witnesses pullback form near-term key resistance confluence as it trades near 0.6456 on early Wednesday.

China’s July month Industrial Production came in at 4.8% versus 5.8% expected while Retail Sales growth weakened to 7.6% against 8.6% forecast.

The pair now aims to revisit 0.6400 round-figure with 0.6425 being an intermediate halt. However, pair’s further declines will be limited to the monthly low of 0.6377, if not then 0.6350/45, including 2016 low, could grab sellers’ attention.

On the upside, a sustained break of 0.6475/76 enables the pair to aim for 0.6500 and monthly top surrounding 0.6590.

In a case buyers manage to dominate past-06590, 200-bar moving average at 0.6627 will be on their radar.

NZD/USD 4-hour chart

Trend: Bearish

1. R3 0.6527
2. R2 0.6499
3. R1 0.6476
PP 0.6448
1. S1 0.6425
2. S2 0.6397
3. S3 0.6374

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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