- NZD/USD met with some fresh supply near the 0.7115-20 support-turned-resistance.
- The intraday technical set-up support prospects for a retest of the key 0.7000 mark.
- Bullish oscillators on the daily chart warrants caution for aggressive bearish traders.
The NZD/USD pair struggled to capitalize on the previous day’s goodish rebound of over 100 pips from the key 0.7000 psychological mark and met with some fresh supply on Tuesday. The momentum ran out of the steam near the 0.7115-20 strong support breakpoint.
Meanwhile, the intraday downtick dragged the NZD/USD pair back to the 0.7060-50 horizontal support during the first half of the European session. With technical indicators on hourly charts holding in the bearish territory, the pair seems vulnerable to retest the 0.7000 mark.
That said, oscillators on the daily chart – though have been losing traction – are still holding in the positive territory. This, in turn, supports prospects for the emergence of some dip-buying near the mentioned level and warrants caution for aggressive bearish traders.
Hence, it will be prudent to wait for a convincing break below the 0.7000 level before positioning for an extension of the sharp corrective slide from over two-and-half-year tops. The NZD/USD pair might then accelerate the fall further towards the 0.6930-25 support zone.
On the flip side, the 0.71000 mark, closely followed by the 0.7115-20 support-turned-resistance might continue to cap any attempted move up. A sustained strength beyond will negate the bearish outlook and pushed the NZD/USD pair back towards the 0.7145 region en-route recent swing highs, around the 0.7170 region.
NZD/USD 4-hourly chart
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Technical levels to watch
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