NZD/USD Erases Early Gains, Eyeing 0.6850 Support
The NZD/USD
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.
