- NZD/USD is consolidating minor losses in the Asian session.
- More downside envisioned below 0.7250.
- Overbought momentum oscillator warns caution against aggressive bids.
The NZD/USD pair remains muted in the early Asian session. The pair is downbeat for the past three sessions in a row, having made a high of 0.7300 on Monday.
At the time of writing, NZD/USD is trading at 0.7262, down 0.14% on the day.
NZD/USD daily chart
-637563731441597907.png)
On the daily chart, the pair has been consolidating losses below 0.7300. The pair formed a spinning top candlestick formation on Monday followed by the next day’s red candle. This technical pattern suggests that prices are looking for a downside move, a break below the previous day’s low at 0.7251 would confirm the case.
The first area of support emerges at the 20-hour Simple Moving Average (SMA) placed at 0.7214, followed by the 0.7170 horizontal support area.
The receding Moving Average Convergence Divergence (MACD) indicator expected to move prices in the vicinity of 0.7100 horizontally placed support area.
Alternatively, if the price makes a sustained move beyond 0.7270, then the first stoppage could be Monday’s high at 0.7300 followed by the 0.7340 horizontal resistance zone. Next, the bulls would scream for February 26 high at 0.7384.