During Asian trading hours, the NZD/USD remains under pressure.
If the pair breaks clearly below 0.6960, more downside is expected.
With a negative bias, the momentum oscillator stays onto the oversold zone.
On Friday, the NZD/USD pair extended its losses from the previous day. The pair began the new trading month on a weaker tone.
NZD/USD is trading at 0.6962 at the time of writing, down 0.19 percent on the day.
The NZD/USD pair has been under sustained selling pressure since breaking through 0.7150 on June 15. The price remains stuck in a trading range that was last seen in late March until April 14, when it breaks out to challenge the high of 0.7317 on May 26.
If the NZD/USD falls below 0.6960, it may find support near the June 21 low in the 0.6935 range.
The MACD (Moving Average Convergence Divergence) indicator is currently in an oversold state. Any MACD downtick could lead to more selling chances in the pair. The bears would witness a return to the numbers experienced in 2020.
NZD/USD would test the November 24, 2020 low of 0.6914. The market will then break through the 0.6900 level, resulting in a low of 0.6875 on November 18, 2020.
If price rises higher, the upside target will be found at the 0.7000 horizontal resistance level, followed by the June 29 high at 0.7052.
The market would then be urged to break over the 0.7090 horizontal resistance level./n
