NZD/USD sellers take a breather following the south-run to smash September’s bottom and test the lowest levels in three months. That said, the Kiwi pair stays sidelined around 0.6860 by the press time of early Friday morning in Asia.

The US Thanksgiving Day holiday offered no respite to the NZD/USD prices as the quote dropped for the fifth consecutive day on its way to register the biggest weekly fall since mid-August.While tracing the catalysts, the fresh covid concerns and the market’s dislike for the Reserve Bank of New Zealand’s (RBNZ) 0.25% rate hike could be linked. Also on the negative side were hawkish statements from the Fed officials and Fed Minutes, before the US markets closed for the holiday.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Having conquered a 14-month-old support line, NZD/USD bears smashed 61.8% Fibonacci retracement (Fibo.) of September 2020 to February 2021 upside, which in turn suggests the quote’s further weakness towards the yearly bottom of 0.6805. Though, oversold RSI conditions may trigger a corrective pullback from the 0.6805 threshold, if not then the September 2020 peak of 0.6800 will act as an extra filter before directing the quote towards 78.6% Fibo. near 0.6715.

Alternatively, 61.8% Fibonacci retracement level of 0.6875 and the previous support line near 0.6900 guards short-term NZD/USD upside.

Following that, a confluence of the 50% Fibo. and short-term descending trend line, as well as the mid-November’s swing high, respectively around 0.6990 and 0.7085, will lure the pair buyers.

Overall, NZD/USD bears keep reins but the 0.6805-6800 region appears a tough nut to crack for them.

NZDUSD Remains Pressurized Below 0.6900

Nov 26 2021