By the middle of Monday’s trading session the NZD/USD currency exchange rate had reached the vital support levels near the 0.7150 mark. Coincidentally at that level a dominant support line was located together with the freshly calculated first weekly support level.
It is highly important to watch whether that level will hold its ground for some time. If it gets passed, the 0.7090 mark will be reached next. If the rate manages to rebound, a surge back up to the 55-hour SMA could occur.
However, the pair’s decline has been largely caused by fundamentals not due to technical reasons. So the rate is more likely going to ignore the technical level’s support.
It is highly important to watch whether that level will hold its ground for some time. If it gets passed, the 0.7090 mark will be reached next. If the rate manages to rebound, a surge back up to the 55-hour SMA could occur.
However, the pair’s decline has been largely caused by fundamentals not due to technical reasons. So the rate is more likely going to ignore the technical level’s support.
However, as the surge of the Buck had stopped on most charts, it had also occurred on the NZD/USD charts. The stop of the decline of the New Zealand Dollar against the US Dollar did not have a technical basis.
Due to that reason, if this level serves as a strong enough support for the rate to start breaking notable resistance levels, a full review of the pair will be needed.
Meanwhile, pay attention that there are support levels just below the 0.7090 mark.