NZD/USD Price Analysis: Corrective pullback fades around 0.7100

• NZD/USD struggles while consolidating weekly losses, stays pressured.
• Downside break of the key Fibonacci retracement, 12-day-old trend line keep sellers hopeful.
• 100-DMA challenges further downside, bulls need to refresh multi-day high.

NZD/USD fails to keep rebound after a two-day downtrend, up 0.06% intraday while easing to 0.7104 ahead of Wednesday’s European session.

The kiwi pair took a U-turn from a three-month high on Friday and extended the downside towards breaking 61.8% Fibonacci retracement of May-August downside, together with an ascending trend line from August 23, during the following south-run. Even so, 100-DMA joins the bullish MACD signals to challenge the pair sellers of late.

Hence, the quote’s further decline needs a clear break of the stated moving average, around 0.7080 by the press time, before confirming further weakness.

Even so, the 50% Fibonacci retracement (Fibo) level of 0.7060 offers multiple supports to challenge the NZD/USD sellers.

Alternatively, the 61.8% Fibo level near 0.7120 guards immediate upside ahead of the previous support line near 0.7155.

It’s worth noting that the NZD/USD bulls may await successful trading beyond the monthly high of 0.7171 for conviction.

NZD/USD: Daily chart

Trend: Further weakness expected