NZD/USD snaps losing streak, what’s next?

The pair manages to break ten straight days of losses on Friday

Depending on your broker, it could be eight days but it’s one in the same. Fact is the pair manages to shake off that losing streak as Friday’s daily close was above Thursday’s close.

But buyers should not rejoice just yet. There is still much work to be done.

Looking at the daily chart, the lows on Friday closed in on the 61.8 retracement level @ 0.7032 but ultimately the pair managed to hold up above that. Any further move to the downside requires a break of said level mentioned but nearby there will be further support at the 0.7000 psychological level as well.

That means the closer we get to 0.7000 the more likely that there will be sellers taking money off the table given the recent run that we’re seeing.

As for near-term levels, buyers need to get above the 100-hour MA in order to justify a move higher to test the next set of resistance levels. Otherwise, as the latest attempt that failed suggests, sellers are still well in control of the pair and a downside move is still eyed at the moment.