NZD/USD Technical Analysis: On the defensive, close below 0.6713 could prove costly

Omkar Godbole FXStreet Contributor

The NZD/USD pair has recovered from a 3.5-month low of 0.6665 seen in the early Asian session but is not out of the woods yet. The spot is currently trading at 0.6732, representing a 0.50 percent drop on a 24-hour basis.

A close below 0.6713 (April 12 low) would confirm a bear flag breakdown, a continuation pattern, which usually accelerates the preceding bearish move. Further, it would reinforce the bearish view put forward by the contracting triangle breakdown, confirmed on April 4, and open the doors for a sustained drop to levels below 0.66.

So, it seems safe to say that a close below 0.6713 could prove costly. The prospects of bearish close would weaken if the spot finds acceptance above Monday's high of 0.6783, although that looks unlikely, courtesy of dovish RBNZ expectations.

Daily chart

Trend: Bearish below 0.6713

NZD/USD

Overview
Today last price	0.6732
Today Daily Change	-0.0031
Today Daily Change %	-0.46
Today daily open	0.6763

Trends
Daily SMA20	0.6796
Daily SMA50	0.6812
Daily SMA100	0.6808
Daily SMA200	0.6733

Levels
Previous Daily High	0.677
Previous Daily Low	0.6741
Previous Weekly High	0.6783
Previous Weekly Low	0.6713
Previous Monthly High	0.6939
Previous Monthly Low	0.6744
Daily Fibonacci 38.2%	0.6752
Daily Fibonacci 61.8%	0.6759
Daily Pivot Point S1	0.6746
Daily Pivot Point S2	0.6729
Daily Pivot Point S3	0.6717
Daily Pivot Point R1	0.6775
Daily Pivot Point R2	0.6787
Daily Pivot Point R3	0.6804

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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