Bears challenge 23.6% Fibonacci retracement near 0.7240
- NZD / USD consolidates at the start of the Asian session.
- The pair retreats from the coveted 0.7300 bar on profit taking.
- The MACD is in the overbought zone, the signals have stretched the buying conditions.
NZD / USD posted modest losses on Thursday, following yesterday’s remarkable move. The pair zoomed from the low of 0.7725 to hit the multi-month high near 0.7320, building up a move of 90 pips.
At the time of writing, NZD / USD is trading at 0.7278, down 0.05% on the day.
NZD / USD daily chart
On the daily chart, the pair consolidated near the 0.7285 mark. The slight pullback from recent highs could be seen as a profit taking of the NZD / USD Taurus. However, if prices slip from the mentioned level, the pullback could be prolonged further and reverse all previous gains.
The first area of support, in this case, would be the 23.6% Fibonacci retracement at 0.7240.
The Moving Average Convergence Divergence Indicator (MACD) is trading in overbought territory with bearish divergence. If the MACD moves lower slightly, it could trigger another round of selling pressure in the pair.
In doing so, NZD / USD bears would be ready to retest the horizontal resistance level of 0.7200 followed by the 50% Fibonacci retracement level at 0.7160.
Additionally, if price remains pegged near the 0.7280 mark then it may try to recover yesterday’s high around 0.7320. This would encourage the bulls to walk towards the horizontal resistance level of 0.7350.
Additionally, the pair might dare to hit the late February high at 0.7384.
Additional levels NZD / USD