NZDUSD continues to lose momentum after the strong pullback on the 0.6900 handle, which drove the pair beneath the 20- and 40-simple moving averages (SMAs) as well as below0.6795, the 38.2% Fibonacci retracement level of the upleg from 0.6560 to 0.6940. The price has been developing within the 0.6755-0.6900 area over the last three weeks, with the RSI indicator pointing marginally to the downside now in the negative territory, confirming the latest bearish action.
In the negative scenario, a slip below the 0.6755 support and the 50.0% Fibonacci could push prices towards the 0.6720 barrier, taken from the lows on February 12. Even lower, the next key level for traders to have in mind is the 61.8% Fibonacci of 0.6705, which if broken, steeper downside movements could emerge.
A reversal to the upside and a successful jump above the 20-SMA and the 38.2% Fibonacci of 0.6795 could see a retest of the 40-SMA around 0.6812. Slightly higher the 0.6832 restrictive mark could attract interest as well, while the 23.6% Fibonacci of 0.6850 could be the next resistance to turn attention in the near term.
In the bigger picture, NZDUSD is still neutral as the market has yet to create a tendency.
