#NZDUSD @ 0.63867 struggles to defend bulls inside one-week-old ascending triangle., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• NZD/USD struggles to defend bulls inside one-week-old ascending triangle.
• 200-SMA, previous resistance from mid-December adds to the downside filters.
• RSI retreat, sluggish MACD lures bears amid dull markets.

The pair currently trades last at 0.63867.

The previous day high was 0.6417 while the previous day low was 0.6335. The daily 38.2% Fib levels comes at 0.6366, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6385, expected to provide support.

NZD/USD stays defensive around 0.6390, following a retreat from multi-day high, as traders await the key China Gross Domestic Product (GDP) for the fourth quarter (Q4) during early Tuesday. Also likely to have probed the Kiwi pair buyers are recently released downbeat quarterly economic forecasts by the New Zealand Institute of Economic Research (NZIER).

Also read: NZIER QSBO: New Zealand business confidence at lowest since 1974

That said, the quote pokes the support line of the weekly ascending triangle, close to 0.6375 by the press time, amid mildly bearish MACD signals and the RSI (14) weakness.

With this, the NZD/USD prices are likely to break the immediate support surrounding 0.6375. However, the 200-Simple Moving Average (SMA) level surrounding 0.6345 appears crucial for the bears.

Following that, the resistance-turned-support line from December 13, 2022, around 0.6265 at the latest, could challenge the Kiwi bears before giving them control.

On the flip side, the aforementioned triangle’s top line, close to 0.6425 by the press time, restricts the short-term NZD/USD upside.

Should the Kiwi pair buyers defy the triangle formation and keep the reins past 0.6425, the 0.6500 round figure and previous monthly peak near 0.6515 could challenge the quote’s upside momentum.

Overall, NZD/USD pair is likely to witness further weakness but the rejection of the bullish trend is yet absent from the radar.

Trend: Further downside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6385 at the time of writing. Pair opened at 0.6387 and is trading with a change of -0.03% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6323, 50 SMA 0.6267, 100 SMA @ 0.6049 and 200 SMA @ 0.6211.

The previous day high was 0.6417 while the previous day low was 0.6335. The daily 38.2% Fib levels comes at 0.6366, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6385, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6342, 0.6298, 0.6261
• Pivot resistance is noted at 0.6424, 0.6461, 0.6505

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