- NZD/USD kick starts the week on a higher note.
- Price is still under 200-DMA indicating a challenge for the bulls comeback.
- Oversold MACD asks for the wait-and-watch approach before placing any directional bet.
NZD/USD recovers part of its previous day’s losses on Monday. The pair edges higher with 30 pips movement.
As of writing, the NZD/USD pair is trading at 0.6965, up 0.46% for the day.
NZD/USD daily chart
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On the daily chart, NZD/USD fell below the 100-day Simple Moving Average (SMA) at 0.7041, which ignited a fresh round of selling in the pair.
After testing the levels, last seen in March, the pair bounce back from the lower levels.
NZD/USD bulls would be encouraged to test the previous day’s high in the vicinity of the 0.7020 level on a sustained move above 0.6970.
The price action suggests the 0.7050 horizontal resistance level as the next target for the bulls.
The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone, which signifies stretched selling conditions. It implies the possibility of NZD/USD claiming back the 0.7100 key psychological mark.
Alternatively, if price breaks the intraday low of 0.6934, then it could continue with the prevailing downtrend.
In doing so, NZD/USD could go back to the levels last seen in 2020. The bears would be meeting the first target of 0.6917, a low made on 24 November 2020.
Next, the pair could approach the 0.6900 horizontal support level followed by November 19 low at 0.6878.