NZD/USD Erases Early Gains, Eyeing 0.6850 Support
pair got fresh offers near 0.6900 level and erased most of its Asian
session gains to trade at 0.6880, holding just a fraction in the green.
The pair faded its early morning spike to 0.6912 and is now headed back to its weekly low level of 0.6860 tested yesterday. The 0.6850-45 area represents a strong support, which if broken might confirm a bearish double top chart pattern formation near 0.7050-55 area. Hence, traders would be closely eyeing this level, below which fresh shorting pressure might continue to drag the pair lower.
Technical levels to watch
Weakness below 0.6850-45 support now seems to accelerate the fall immediately towards 50-day SMA support near 0.6810. The fall could further get extended towards an important support confluence near 0.6785, comprising of a short-term ascending trend-channel support and 38.2% Fibonacci retracement level of 0.6347-0.7054 up-swing.
Meanwhile on the upside, move above 0.6900 might continue to face resistance near 0.6920 horizontal area, which if conquered seems to further lift the pair towards Wednesday's high of 0.6940 and eventually towards its next major resistance near 0.6975-80 region.