- The NZD/USD pair continued with its struggle to build on its momentum beyond the 0.6720-30 supply zone, or near 2-1/2 month tops set earlier this week.
- The mentioned barrier coincides with a confluence region – comprising of the very important 200-day SMA and 50% Fibo. level of the 0.6939-0.6481 recent slide.
Technical indicators on the daily chart maintained their bullish bias but have already started losing positive momentum on hourly charts, warranting some caution before placing any aggressive directional bets.
Meanwhile, the downside remains supported by 38.2% Fibo. level, around mid-0.6600s, which should act as a key pivotal point for the pair’s near-term trajectory, though traders are likely to wait for Friday’s NFP report.
Sustained break through the mentioned support, the pair is likely to accelerate the slide further towards testing another confluence support near the 0.6600-0.6595 region – comprising of 50-day SMA and 23.6% Fibo. level.
Alternatively, a convincing move beyond the 0.6720-30 supply zone will set the stage for an extension of the recent recovery move further towards 0.6775-80 intermediate resistance en-route the 0.6800 round figure mark.
NZD/USD daily chart
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