NZD/USD technical analysis: Bulls take a breather near 200-DMA/50% Fibo. confluence region

  • The NZD/USD pair extended its recent bullish trajectory further beyond the 0.6700 handle, hitting over two-month tops on the last trading day of the week.
  • Meanwhile, bulls took a brief pause near a confluence region – comprising of the very important 200-day SMA and 50% Fibo. level of the 0.6939-0.6481 downfall.

A follow-through buying will confirm a fresh bullish break-out and set the stage for an extension of the recent appreciating move, though traders are likely to wait for the outcome of the US President Donald Trump’s meeting with his Chinese counterpart Xi Jinping.

Momentum beyond the mentioned barrier has the potential to accelerate the up-move towards the 0.6765-70 supply zone (61.8% Fibo. level), before the pair darts towards reclaiming the 0.6800 handle en-route April swing highs, around the 0.683540 region.

Meanwhile, rejection slide from the current resistance zone now seems to find decent support near 38.2% Fibo. level – around the 0.6660-55 region, which if broken might turn the pair vulnerable to aim towards challenging the 0.6600 round figure mark.

NZD/USD daily chart

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