NZD/USD Technical Analysis: Seems poised to test 38.2% Fibo. level ahead of 0.6700 handle

   “¢   After yesterday’s brief pause, the pair came under some renewed selling pressure and tumbled to sub-0.6800 level, or over two-week lows in the last hour.

   “¢   The pair’s inability to move back above 100-hour SMA was seen as one of the key factors prompting some aggressive long-unwinding trade on Friday.

   “¢   A sustained weakness below 23.6% Fibonacci retracement level of the 0.6424-0.6970 recent recovery move further acted as a key trigger for bearish traders.

   “¢   Technical indicators on hourly charts are already pointing to oversold conditions and thus, warrant some near-term consolidation/minor pull-back.

   “¢   However, oscillators on the daily chart have just started gaining negative momentum and suggest that any meaningful bounce is likely to get sold into.

   “¢   The set-up favours an extension of the intraday downfall towards 38.2% Fibonacci retracement level en-route the 0.6700 handle ahead of the US macro data.
 

NZD/USD 1-hourly chart