- NZD/USD edges lower following the drop to one-month low.
- 38.2% Fibonacci retracement restricts immediate moves amid pre-NFP caution.
- 100-day SMA, monthly support breakdown joins bearish MACD support to favor sellers.
NZD/USD grinds lower inside a 20-pips trading range around 0.7150 amid a subdued Asian session on Friday. In doing so, the kiwi pair seesaws around 38.2% Fibonacci retracement of late February-March downside amid bearish MACD.
However, a clear downside break of 0.7180-85 confluence, comprising 100-day SMA and a monthly support line, now resistance, keeps NZD/USD sellers hopeful.
It’s worth noting that a seven-week-old horizontal area near 0.7120 becomes an immediate support to watch during the quote’s fresh downside.
Following that, 23.6% Fibonacci retracement level near 0.7065 and the 0.7000 threshold may offer intermediate halts during the fall targeting the yearly bottom of 0.6943.
Alternatively, the pair’s recovery moves need a daily closing beyond 0.7185 resistance convergence to convince NZD/USD buyers for re-entry.
During the price run-up beyond 0.7185, 61.8% Fibonacci retracement level and May’s top, respectively around 0.7265 and 0.7320, will be the key to follow.
NZD/USD daily chart
Trend: Further weakness expected
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