- NZD/USD remains under pressure in the initial European trading hours.
- Bulls find strong support near the 0.6960 level.
- Momentum oscillator holds onto the oversold zone with negative bias.
NZD/USD edges lower on the fresh trading week in the European trading hour. The pair started the new month of trading on a lower note.
At the time of writing, NZD/USD is trading at 0.6968, down 0.07% for the day.
NZD/USD 4-hour chart
On the 4-hour chart, after testing the high of 0.7022 high, which also forms the double top technical formation of a bearish pattern, finds support near the 0.6960 level.
That said, If NZD/USD is sustained above 0.6960, it could find the first resistance near the 23.6% Fibonacci retracement level, which extends from the low of 0.6881, at 0.6987.
The next upside target for the bulls could be stationed at the 0.7000 horizontal resistance level.
A pass above the 0.7000 psychological mark would make it easy for the NZD/USD bulls to conquer the high of July 30 at 0.7022.
The Moving Average Convergence Divergence (MACD) indicator trades in an overbought zone. Any downtick in the MACD could trigger more selling opportunities in the pair.
NZD/USD would test the 50% Fibonacci retracement at 0.6951. The price will then march toward the 0.6935 horizontal support level.
The next area of support would be the low of July 28 of 0.6901.