NZD/USD technical analysis: Near-term upside capped by 0.6405/06 resistance-confluence
|- NZD/USD slips below 23.6% Fibonacci retracement of its downpour since August 13.
- 200-HMA, 50% of Fibonacci retracement limits immediate upside.
Failure to hold recent recovery drags the NZD/USD pair to sub-23.6% Fibonacci retracement level while taking rounds to 0.6370, ahead of Tuesday’s European session opening.
The pair now aims to visit 0.6350 and Monday’s low near 0.6341. However, a downward sloping trend-line connecting Thursday’s low to latest bottom offers a rest around 0.6320.
Meanwhile, 0.6380 can act as immediate resistance during the pair’s pullback ahead of highlighting 0.6405/06 confluence including 200-hour moving average (HMA) and 50% Fibonacci retracement.
In a case where prices keep rallying beyond 0.6406, last week’s high near 0.6430 can lure buyers.
NZD/USD hourly chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.