- NZD/USD trades with modest gains in the early Asian session.
- More downside envisioned if price breaks 0.7190.
- Momentum oscillator tilts in favor of bearish momentum.
The NZD/USD pair maintains a subdued tone in the early Asian session. The pair moves in a very close trading range.
At the time of writing, the NZD/USD pair is trading at 0.7195, down 0.14% on the day.
NZD/USD daily chart
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On the NZD/USD daily chart, the pair has been consolidating near the 0.7205 mark with the formation of multiple tops making it a critical level to trade. If price makes a sustained move above the mentioned level, then the first target for NZD/USD bulls would be the 20-hour Simple Moving Average (SMA) placed at 0.7220.
In doing so, market participants would look to retest the Wednesday high at 0.7250 followed by the May 12 high at 0.7283.
The Moving Average Convergence Divergence (MACD) indicator trades above the midline with a bearish crossover. This signifies receding bullish momentum in the pair and, if any downtick occurs in the MACD, it could drag price lower toward the horizontal support level at 0.7170.
The selling pressure would intensify once price slips below the above mentioned level. The next area of support would then emerge at the 0.7170 horizontal support level. This would mark the reversal of the prevailing trend and bears would next target for the 0.7130 horizontal support level.
NZD/USD Additioanl Levels
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