NZD/USD is still under pressure below a one-month-old resistance line, failing to extend the corrective pullback seen on Friday.
Buyers are kept hopeful by a bullish MACD, but the 100-SMA adds to the upside filters.
By early Monday, the NZD/USD had made a U-turn from the short-term key resistance line and was trading at 0.7023, down 0.08 percent.
The latest moves in the kiwi pair are influenced by China’s Caixin Services PMI, which came in at 50.3 versus 55.7 expected and 55.1 previously, as well as negative market sentiment.
While the psychological magnet of 0.7000 attracts intraday sellers, the NZD/USD bears will be tested after Friday’s low around 0.6945 and the yearly bottom near the 0.6925-20.
September 2020 tops near the 0.6800 round figure will be in focus if the quote remains bearish past 0.6920.
Alternatively, an upside break of the stated resistance line near 0.7035 isn’t a green light for NZD/USD buyers, as the key hurdles will be the 100-SMA level of 0.7042 and the June 25 top around 0.7100.
Bearish trend/n
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