- Kiwi bulls have witnessed an intense sell-off after failing to balance above 0.7000.
- The asset is auctioning below 38.2% Fibo retracement at 0.6842.
- A bear cross of 20- and 200-EMAs signals a bearish impulsive wave ahead.
The NZD/USD pair has displayed a four-day losing streak after failing to sustain above the psychological resistance of 0.7000 last week. The pair is trading near Monday’s low at 0.6813 and is expected to extend its losing streak after dropping below Monday’s low decisively.
On a four-hour scale, NZD/USD has tumbled below the 38.2% Fibonacci retracement (placed from January’s low at 0.6529 to March’s high at 0.7035) at 0.6842. The major is auctioning a tad lower the trendline placed from January 28 low at 0.6529, adjoining the February 14 low at 0.6593 and February 24 low at 0.6640.
A bear cross, represented by 20- and 200-period Exponential Moving Averages (EMAs) adds to the downside filters.
The Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which signals more pain ahead.
Should the asset drops below Monday’s low at 0.6813, greenback bulls may drag the asset towards the 50% and 61.8% Fibo retracement at 0.6782 and 0.6722 respectively.
On the contrary, kiwi bulls can drive the asset higher if the asset oversteps the 200-EMA at 0.6866. This will send the major towards the 23.6% Fibo retracement at 0.6916, followed by the psychological resistance at 0.7000.
NZD/USD four-hour chart
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