- NZD/USD snaps four-day uptrend around the two-month high.
- Nearly overbought RSI, pullback from monthly resistance line add strength to bearish bias.
- Tops marked during mid-June, early-August lure near-term sellers ahead of monthly support line.
NZD/USD holds onto the previous day’s pullback from a two-month high as the adjacent key resistance line and 100-DMA challenge buyers during Friday’s Asian session. That said, the NZD/USD pair prints mild losses around 0.6430 by the press time.
The Kiwi pair’s latest drop from the upward sloping resistance line from July 08, as well as a retreat from the 100-DMA, also justifies the RSI’s recent struggles around the overbought territory. With this, the NZD/USD sellers are likely to re-enter the game.
However, the June 16 high will precede the August-start peak, respectively around 0.6395 and 0.6350, to restrict the short-term NZD/USD downside.
Following that, a one-month-old ascending support line near 0.6255 will be crucial to watch.
On the flip side, the 100-DMA and the aforementioned resistance line, around 0.6435 and 0.6455 in that order, will challenge the short-term advances of the Kiwi pair.
Even if the NZD/USD prices rise past 0.6455, the latest high close to 0.6465 can act as an extra filter to the north before directing bulls towards June’s monthly peak of 0.6575.
NZD/USD: Daily chart
Trend: Further weakness expected