NZD/USD Price Analysis: Bears prepare for 0.7020 below 100-SMA
- NZD/USD remains pressured near the two-week low flashed the previous day.
- Failure to regain beyond 100-SMA, descending RSI direct sellers toward 200-SMA.
- Bulls need to cross 10-day-old resistance line for fresh entry.
NZD/USD takes offers to refresh the intraday low around 0.7060, down 0.18% on a day, after the corrective pullback from 11-day low fails to cross 100-SMA during early Friday.
In addition to the kiwi pair’s failures to rise past 100-SMA, the downbeat RSI line, not oversold, also keep NZD/USD sellers hopeful.
That being said, the latest weakness aims for a 200-SMA level of 0.7025 before testing the August 27 high near 0.7020.
Should the quote fails to rebound from 0.7020, 50% Fibonacci retracement of late August to early September upside near 0.6985 and late August bottom near 0.6930 will be on the bears’ radars.
On the flip side, recovery moves need to cross the 100-SMA level of 0.7080 before targeting the 0.7100 threshold.
Even so, a downward sloping resistance line from September 03, around 0.7145, becomes the key hurdle to the north-run toward the monthly peak of 0.7171.
NZD/USD: Four-hour chart
Trend: Further weakness expected