- NZD/USD fades bounce off six-week-old horizontal support, keeps Friday’s 100-day EMA breakdown.
- Bearish MACD also favors sellers, falling trend line from May 26 adds to the upside filters.
NZD/USD drops back towards 0.7130, down 0.07% intraday, amid Monday’s Asian session. In doing so, the kiwi pair extends Friday’s 100-day EMA breakdown towards the previous month’s low.
Other than the downside break of the 100-day EMA, around 0.7155, bearish MACD also favors NZD/USD sellers targeting 0.7115 horizontal support.
It should, however, be noted that early March lows near 0.7100 and multiple tops marked around 23.6% Fibonacci retracement of February-March downside, near 0.7065, adds to the pair’s supports.
Meanwhile, an upside clearance of 100-day EMA level of 0.7155 won’t be enough for the NZD/USD bulls to return as a convergence of a three-week-old falling trend line and 50% Fibonacci retracement level close to 0.7205 pose a serious challenge to the pair’s upside momentum.
Even if the quote rises past 0.7205, 61.8% Fibonacci retracement level and late May high, respectively around 0.7265 and 0.7320, will be the key resistances to watch.
NZD/USD daily chart
Trend: Bearish
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