NZD/USD Grinds Lower, Drops to 0.6950 Session Low
Irrespective of the range-bound moves in most major currencies, the NZD/USD pair has been slowly grinding lower and is currently trading at session low of 0.6953.
Corrective move from short-term overbought conditions
The gradual selling pressure witnessed in kiwi is likely to find some immediate support near 0.6940 representing 38.2% Fibonacci retracement level of 0.6762-0.7054 up-swing. Weakness below 0.6940 seems to accelerate the fall initially to 0.6920 intermediate support before eventually dropping towards 50% Fibonacci retracement level support near 0.6900 round figure mark.
With H4 RSI dropping below 50 from overbought conditions, the prospects of NZD/USD near-term pull-back remain high.
On the upside, 23.6% Fibonacci retracement level near 0.6985, closely followed by 0.7000 psychological mark, seems to act as immediate resistance levels. Should the pair manage to bounce back and sustain its strength above 0.7000 mark, it could make a fresh attempt to move back towards 0.7045-50 region.