- NZD/USD off multi-week highs near 0.7280 on Friday.
- Bears challenge the key support near 0.7220.
- Neutral MACD tilts in favor of the downside momentum
The NZD/USD pair came under strong bearish pressure on Thursday and dropped to its lowest level in the previous two sessions at 0.7220. Although the pair managed to erase a small portion of its daily losses in the Asian session, it was last seen gaining 0.01% on the day at 0.7246. The consolidation in prices happens following the below forecasts Chinese Manufacturing PMI.
NZD/USD daily chart
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On the daily chart, the pair has been consolidating gains while managing to defend the lower levels near 0.7240. The formation of Doji candlesticks along with the descending trendline from Thursday’s high near 0.7290 act a strong wall of resistance for the price to cross over, thus giving an expression that bears could have an edge in conquering the trade.
The price is taking support near the 20-hour simple moving average(SMA) placed at 0.7246. If the price breaks below, then the first stop would appear at 0.7230 horizontal support zone and next it will keep an eye for 0.7210. The receding Moving Average Convergence Divergence (MACD) suggests prices could test April 28 lows in the vicinity of 0.7180.
On the flip slide, if the price barges above the downward sloping line and sustains above it then the first upside hurdle would emerge near the 0.7265 horizontal resistance zone. Moving higher it could touch Thursday’s high near 0.7290, and then early March highs at 0.7305.