NZD/USD has been holding within a narrow range over the last couple of days, with upper boundary the mid-level of the Bollinger band around 0.6590 and lower boundary the 0.6565 support level. The MACD is flattening near its red signal line, while the RSI is still hovering below the neutral threshold of 50, all signaling more cautious trading in the short term.
Traders would be eagerly looking for a break below 0.6565 to increase selling orders. If that’s the case, the rally could last until the 61.8% Fibonacci region of the rally from 0.6480 to 0.6880 near 0.6560. If bearish forces appear even stronger, 0.6525 should be another barrier to keep in mind.
Should the price erase the recent downward movement and jump above the 0.6590 resistance, the 38.2% Fibonacci of 0.6600 could provide immediate resistance. Moving marginally higher, the focus could shift to the 40-simple moving average (SMA), which is located near 0.6610 in the 4-hour chart, while more gains could drive the pair until the 23.6% Fibonacci of 0.6630.
In brief, despite the recent neutral action, the price is heading lower following the pullback on the seven-week high of 0.6880.
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