#NZDUSD @ 0.63606 struggles to defend weekly gains despite keeping recent technical breakouts., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• NZD/USD struggles to defend weekly gains despite keeping recent technical breakouts.
• Convergence of weekly resistance line, 61.8% Fibonacci retracement level guards immediate upside amid bearish MACD signals.
• Sustained trading beyond 200-SMA, previous resistance line from early December keeps buyers hopeful.

The pair currently trades last at 0.63606.

The previous day high was 0.6391 while the previous day low was 0.6342. The daily 38.2% Fib levels comes at 0.6361, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6372, expected to provide resistance.

NZD/USD retreats to 0.6370 as bulls take a breather ahead of the key inflation data from China and the US on early Thursday.

In doing so, the Kiwi pair fades the previous day’s bounce off the 200-Simple Moving Average (SMA). Also adding strength to the pullback moves could be the bearish MACD signals.

Even so, the NZD/USD buyers defend Friday’s upside break of the one-month-old descending resistance line, now support, as well as the 200-SMA. On the same line is the firmer RSI (14) line, not overbought.

Hence, the NZD/USD price is likely to struggle despite keeping the latest bullish signals.

That said, a convergence of the weekly descending trend line joins the 61.8% Fibonacci retracement level of the pair’s December-January downturn, around 0.6390, appears a tough nut to crack for the NZD/USD bulls.

Following that, the monthly high around 0.6415 appears additional upside filter for the quote to cross to justify the traders’ bullish bias.

In a case where the NZD/USD remains firmer past 0.6415, the odds of witnessing a run-up toward the previous monthly peak of 0.6514 can’t be ruled out.

Meanwhile, the 200-SMA and the aforementioned resistance-turned-support line, close to 0.6335 and 0.6295 in that order, restrict the short-term downside of the NZD/USD pair.

If the Kiwi pair sellers keep the reins past 0.6295, the recent hopes of witnessing a north-run take a backseat as prices could challenge the monthly low of 0.6190.

Trend: Pullback expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6367 at the time of writing. Pair opened at 0.6371 and is trading with a change of -0.06% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6324, 50 SMA 0.6235, 100 SMA @ 0.6043 and 200 SMA @ 0.6219.

The previous day high was 0.6391 while the previous day low was 0.6342. The daily 38.2% Fib levels comes at 0.6361, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6372, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6345, 0.6319, 0.6296
• Pivot resistance is noted at 0.6394, 0.6417, 0.6443

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