NZD/USD Price Analysis: Bears attack monthly support line near 0.7100

• NZD/USD takes offers to refresh weekly bottom, extends the previous day’s losses.
• Bearish MACD, descending RSI line hints at further weakness.
• 200-SMA could challenge bears, bulls need to cross fortnight-old resistance line for conviction.

NZD/USD remains on the back foot, refreshing weekly low near the 0.7100 threshold as European traders brace for Wednesday’s bell.

The kiwi pair drops for the second consecutive day as sellers jostle with an ascending support line from October 13.

Given the bearish MACD signals and downward sloping RSI line, not oversold, the NZD/USD weakness is likely to extend towards the 200-SMA level of 0.7057, should the quote stay below 0.7100.

Meanwhile, the corrective pullback may aim for the 23.6% Fibonacci retracement of September-October upside, around 0.7135, before challenging the two-week-long resistance line near 0.7170.

Should the NZD/USD buyers manage to cross the 0.7170 hurdle, the monthly peak of 0.7200 and October’s high around 0.7220 will be in focus.

NZD/USD: Four-hour chart

Trend: Further weakness expected