NZD/USD still consolidating; unable to show strong momentum.
NZD/USD remains under pressure as it has failed to create a significant movement either to the upside or downside. The price has been developing below 0.6974 and the 23.6% Fibonacci retracement level of 0.6978; as calculated in the down-leg from 0.7395 to 0.6850 since May 11.
From the technical point of view, in the 4-hour chart, prices are struggling within the 20- and 40-simple moving averages (SMA) over the last couple of hours. Furthermore, the RSI indicator is pointing marginally south in the negative zone, suggesting bearish movement, while the MACD oscillator is flattening near the zero line.
In the wake of further negative pressures, the market could meet support at the 0.6870 level before it heads lower to the 0.6850 support level. A successful close below this level could see a retest of the previous low of 0.6820, taken from the bottom on December 2017, while in case of steeper declines, the pair could breach this trough, diving to the 0.6780 hurdle which used to provide support during last November.
On the flip side, a move to the upside could see immediate resistance at the 0.6974 high, achieved on Tuesday but should the market increase positive momentum above this area. 0.6985 could be the next level of focus. The aforementioned levels are close to each other and a penetration to the upside of this area could open the way for a bullish run towards the 0.7050 level.
Overall, the pair is fairly neutral as long as it holds between the 0.6850 support and the 0.6974 resistance and the technical indicators seem to be flat as well.
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