NZD/USD Price Analysis: Bears challenge 23.6% Fibonacci retracement near 0.7240
- NZD/USD consolidates in the early Asian session.
- Pair retreats from the coveted 0.7300 mark on profit-taking.
- MACD is in overbought zone, signals stretched buying conditions.
The NZD/USD pair books modest losses on Thursday, following the previous day’s remarkable move. The pair zoomed from the lows of 0.7725 to touch the multi-month high near 0.7320, accumulating 90-pip movement.
At the time of writing, the NZD/USD pair is trading at 0.7278, down 0.05% on the day.
NZD/USD daily chart
On the daily chart, the pair has been consolidating near the 0.7285 mark. The slight pullback from the recent highs could be considered as NZD/USD bull’s profit-taking. However, if price skids from the mentioned level, then the pullback could be extended further and reverse all prior gains.
The first area of support, in that case, would be the 23.6% Fibonacci retracement at 0.7240.
The Moving Average Convergence Divergence (MACD) indicator, trades in overbought territory with a bearish divergence. If MACD moves slightly lower, then it could trigger another round of selling pressure in the pair.
In doing so, the NZD/USD bears would be willing to retest the 0.7200 horizontal resistance level followed by the 50% Fibonacci retracement level at 0.7160.
Additionally, if price remained grounded near the 0.7280 mark, then it could try to recoup the previous day's high in the vicinity of 0.7320 area. This would encourage bulls to march toward the 0.7350 horizontal resistance level.
Further, the pair could dare to meet the late February's high at 0.7384.
NZD/USD Additioanl Levels
Reprinted from FXStreet_id,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.