NZD/USD technical analysis: 11-week old resistance-line, 61.8% Fibo. question buyers cheering 200-D EMA break
- Upbeat China data help NZD/USD buyers to cross 200-D EMA.
- Short-term trend-line resistance, 61.8% Fibonacci retracement stand tall to question buyers amid near overbought RSI levels.
Except for China’s second quarter (Q2) Gross Domestic Product (GDP) print on a QoQ basis, the majority of the statistics from recently published data dump pleased Antipodeans buyers. The NZD/USD pair, being one of them, rose past-200-day exponential moving average (200-D EMA) after the release while taking the rounds to 0.6720 by the press time of early Monday.
Although break of the key exponential moving average (EMA) portrays the quote’s strength, an upward sloping trend-line stretched since late-April, at 0.6740, followed by 61.8% Fibonacci retracement of February to May downpour at 0.6766, can keep prices in check.
In a case prices rally past-0.6766 on a daily closing basis, mid-April high surrounding 0.6785, adjacent to 0.6800 round-figure, can be bulls favorites.
On the contrary, failure to hold recent breakout momentum, as suggested by the 14-day relative strength index (RSI), can recall 0.6685/80 and 100-D EMA level of 0.6662.
During the counts of declines below 0.6662, 0.6600, 23.6% Fibonacci retracement level of 0.6590 and immediate support-line near 0.6580 seem key to the sellers.
NZD/USD daily chart
Trend: Pullback expected