NZDUSD was forced to move back after marking two consecutive weekly wins, thanks to resistance from the descending trendline, which has been joining the highs from the 2021 peak of 0.7463.
The pullback from the three month high of 0.7169 sent the price below the 0.7100 level and the 200-day simple moving average (SMA), marginally though, turning the focus to the 38.2% Fibonacci retracement of the 0.7463 – 0. 6800 downleg at 0.7055.
With the RSI and the fast Stochastics losing steam, and the MACD having reached its previous resistance territory, speculation is growing that the price could remain under selling pressure in the near term. That said, an upturn cannot be ruled out at the moment as the RSI and the MACD continue to fluctuate within the bullish territory despite their recent weakness.
If the 0.7055 handle proves easy to clear on the downside, the next turning point could take place somewhere between the 20- and 50-day SMAs around 0.6995 and the 23.6% Fibonacci of 0.6959. A close below the 0.6932 floor could open the door for the 0.6877 support area, while beneath that, the bears will attempt to extend the bearish pattern past the 0.6800 bottom and towards the 0.6682 former resistance region last seen in October 2020.
Should the bulls resurface, driving the pair successfully above the trendline and the three-month high of 0.7169, some consolidation could immediately develop around the 0.7200 psychological mark before the 61.8% Fibonacci of 0.7253 comes on the radar. Yet, only a significant move above 0.7300 would clear the way towards the top of 0.7463.
All in all, NZDUSD is expected to give up some ground in the short term, especially if it slides below the next support of 0.7055.
