- The NZD / USD bounce is still limited by the resistance of the ascending triangle.
- The RSI remains above the midline, keeping NZD buyers hopeful.
- All eyes are on the RBNZ for the next direction in the NZD.
The NZD / USD pair is looking limited after meeting stiff resistance near the 0.6950 region once again.
Thus, the pair fails to rise above this region. The NZD has been constrained by a new wave of risk aversion following renewed fears about Evergrande in China.
Looking ahead, all eyes remain on the US NFP Nonfarm Payrolls and the RBNZ’s monetary policy decision for a new directional boost this week.
From a short-term technical perspective, the currency pair is challenging the obstacle of the four-day-old ascending triangle at 0.6950 on the four-hour chart, as the recovery from five-week lows of 0.6859 falters.
A close above this resistance level is needed to confirm a breakout of the triangle, which would open the doors towards 0.7000.
Before targeting that round level, the bulls will be looking to break above the downslope 50 SMA at 0.6972.
Despite the pullback, NZD buyers remain hopeful as the RSI is still holding above the midline.
NZD / USD 4 hour chart
On the other hand, immediate support is seen at the 21-period simple moving average at 0.6910.
If the sellers manage to drop below the 21 SMA, then a slide towards the triangle support at 0.6892 will be inevitable.
NZD / USD additional levels
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