The NZD/USD is struggling to hold onto its first daily gains in four days, as a two-day-old falling trend line, 50-HMA, and multiple support from June 21 test sellers guard immediate upside.
Bulls may be hesitant to enter below 0.7030 because the momentum line signals further grinding to the south.
During the first positive day of the week, the NZD/USD oscillates around 0.6990, up 0.10 percent intraday. Despite this, the Kiwi pair is stuck in a 40-pip trading range with a downward sloping Momentum line.
Fundamentally, the quotation is being weighed down by negative statistics from China and Australia, as well as the current covid troubles in the Asia-Pacific.
On conflicting Aussie and China statistics, the AUD/USD remains on its path to an annual low around 0.7500.
As a result, the NZD/USD sellers may maintain their position, but will wait for a clear fall break of 0.6960 before entering new trades targeting the yearly low of 0.6923.
The 0.6900 threshold and September 2020 top near 0.6800 will be in the limelight if the bears dominate past 0.69123.
On the other hand, a breakout above the 0.7000 round-figure, which includes the 50-HMA and the immediate falling trend line, might accelerate the recovery to the 38.2 percent Fibonacci retracement of the June 18-25 upside, which is approaching 0.7030.
Any more rise, on the other hand, will allow NZD/USD buyers to target the late June high around 0.7100 before running into successive lows between April and June around 0.7125.
To summarize, despite the recent rebound, NZD/USD is on the back foot, and more losses cannot be ruled out.
More weakness is likely in the future./n
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