NZD/USD dribbles around 0.6960 during the early Friday morning in Asia, after an active Thursday that snapped a two-day uptrend. The market sentiment remains mixed with a rebound in equities failing to justify firmer yields amid indecision over the key risk catalysts surrounding Ukraine and inflation.

Although overbought RSI triggered the mid-week pullback from 0.6989, the 61.8% Fibonacci retracement (Fibo.) of October 2021 to January 2022 downside and the 200-DMA, respectively around 0.6950 and 0.6910, limit the short-term downside of the NZD/USD prices.

Even so, the kiwi pair remains firmer inside a one-week-old ascending trend channel bullish formation.

That said, the pair’s successful trading above the 200 and 100 HMAs join firmer RSI, not overbought, to keep buyers hopeful of crossing the 0.6990 immediate hurdle.

Following that, the 0.7000 threshold and upper line of the stated channel near 0.7030 will lure the NZD/USD bulls.

Although the RSI is likely to turn overbought by reaching 0.7030, any further upside will be challenged by the mid-November 2021 peak surrounding 0.7080.

Alternatively, pullback remains elusive until the quote stay above the support line of the aforementioned channel, near 0.6950.

Also acting as the downside filter is the 100-HMA and 200-HMA level, respectively around 0.6935 and 0.6885.

Even if the NZD/USD bears conquer the 200-HMA support, the weekly low of 0.6864 will act as an extra filter to the south.

Moving on, second-tier US data next week may entertain NZD/USD traders but headlines concerning Russia and Inflation will be crucial to watch for fresh impulse.

NZDUSD Under Selling Pressure Below 0.7000

Mar 25 2022

Stop Loss -0.59%

Holding time 10d13hr

0.69630

Entry price

0.70040

Stop loss price