NZD/USD Momentarily Dips Below 0.6800 Handle
pair extended its decline further on Monday and has now dropped below
an important support confluence near 0.6810-0.6805 to currently trade at
the session low level of 0.6800 handle.
The pair has now dropped over 250-pips from its recent high of 0.7054 level touched April and May. The pair's repeated rejection from 0.7050-55 resistance area and a subsequent break below 0.6850 has confirmed a bearish double-top chart pattern formation on daily chart.
Moreover, the pair has now also broken through an important support confluence support comprising of a short-term ascending trend-channel support and 55-day SMA, confirming a break-down and further downward momentum in the near-term.
Technical levels to watch
Below 0.6800 handle, the pair seems to accelerate the fall immediately towards 0.6780 level marking 38.2% Fibonacci retracement level of 0.6347-0.7054 up-move and the fall could further get extended towards 100-day SMA support near 0.6725-20 region.
On the upside, 0.6825 level followed by day's peak near 0.6850 seems to act as immediate resistance levels. Only on a clear break through these resistance levels, the pair might attempt further recovery back towards 23.6% Fibonacci retracement level resistance near 0.6875-85 region.