NZDUSD – rising downside pressure after 10SMA capped recovery
The Kiwi dollar remains at the back foot on Monday and extends weakness from last Friday’s high at 0.7052, where recovery attempt was capped 10SMA in steep descend.
Brief recovery off 0.6985 base (the lowest in 4 ½ months) where steep bearish acceleration from 0.7394 (13 Apr) found footstep, so far looks like consolidation ahead continuation of larger downtrend.
Fresh weakness on Monday pressures psychological 0.7000 support and looks for attack at 0.6985 base, break of which would generate fresh signal for bearish continuation towards 0.6935/00 (Fibo 76.4% of 0.6780/0.7436 / round-figure support).daily MA’s are in strong bearish setup, however, momentum turned in sideways mode; slow stochastic reversed from oversold territory, while daily RSI is holding around oversold border line, suggesting that consolidation may extend.
Initial bullish signal could be expected on close above 10SMA which would ease downside pressure, but strong overall bears suggest limited recovery.
Res: 0.7042; 0.7052; 0.7081; 0.7140
Sup: 0.6985; 0.6935; 0.6900; 0.6822