- July 31, 2020
- Posted by: Trading
- Category: News
- NZD/USD witnessed an intraday turnaround from seven-month tops on Friday.
- Bears might now await a sustained break below the 0.6640 confluence support.
The NZD/USD pair extended its sharp intraday pullback from near seven-month tops and refreshed daily lows, around mid-0.6600s during the early North American session.
Bearish traders might now be aiming to challenge one-month-old ascending trend-line support, around the 0.6640 region. The mentioned level coincides with the 23.6% Fibonacci level of the 0.6385-0.6717 positive move, which should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on hourly charts have just started drifting into the negative territory and support prospects for additional weakness. However, oscillators on the daily chart maintained their bullish bias and warrant some caution before placing any aggressive bearish bets.
This makes it prudent to wait for a sustained breakthrough the 0.6640 confluence support before confirming that the pair has topped out in the near-term. This, in turn, might accelerate the slide towards the 0.6620 horizontal level en-route the 0.6600-0.6590 region (38.2% Fibo. level).
On the flip side, the 0.6685 level now becomes immediate resistance and is closely followed by the 0.6700 round-figure mark. A sustained strength beyond now seems to assist the pair to aim back to retest YTD tops, around the 0.6940 region ahead of the 0.6955 level (Dec. 31 high).
NZD/USD 4-hourly chart
Technical levels to watch