- Near-term important support and oversold RSI question further declines.
- 0.6610 becomes the key upside barrier.
While sustained trading beneath 0.6610 portrays the NZD/USD pair’s weakness, 100-bar moving average and 61.8% Fibonacci retracement can limit further declines of the quote that seesaws around 0.6570 while heading into European open on Wednesday.
The 100-bar moving average on the 4-hour chart (4H 100MA) and 61.8% Fibonacci retracement of latest upside together constitute 0.6562 – 0.6557 support area. Adding to the support strength could be oversold levels of 14-bar relative strength index (RSI).
Should sellers refrain from respecting 0.6557 rest-point, its drop to 0.6530 horizontal mark 0.6500 and then to 0.6480 can’t be denied.
Alternatively, 0.6590 could become immediate resistance to watch during the pullback prior to highlighting 0.6610 horizontal-line for one more time.
If there prevails an extended north-run past-0.6610, 0.6655 and 0.6685 could become buyers’ favorites.
NZD/USD 4-Hour chart
Trend: Pullback expected
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