NZD/USD Price Analysis: Bears dominate below 0.7000 level

• NZD/USD discards the previous upside momentum and trades lower on Monday.
• Additional losses for the pair if price decisively breaks 0.6990.
• Momentum oscillator holds onto the oversold zone with a positive bias.

NZD/USD edges lower on Monday in the Asian trading hour. The pair opened hovers in a close trading band with no meaningful traction.

At the time of writing, NZD/USD is trading at 0.6994, up 0.24% for the day.

NZD/USD daily chart

On the daily chart, the NZD/USD pair has recovered from the low of 0.6805 made on August 20 to traveled back to the high of 0.7020 on August 27. However, NZD/USD failed to sustain the momentum and drifts lower.

Being said that, if the spot breaks the 50-day Simple Moving Average (SMA), then it could test the 0.6950 horizontal support level.

That said If NZD/USD would approach the 0.6900 horizontal support level.

The Moving Average Convergence Divergence (MACD) indicator trades in an oversold zone. Any downtick in the MACD could trigger more selling opportunities in the pair to reach the 0.6850 horizontal support level.

Alternatively, if price starts moving higher, it could test the first upside target at a high made on August 17 at 0.7032.

NZD/USD bulls would next target the 0.7059 horizontal support level followed by the level seen in June.

The market participants would recapture the high of June 17 at 0.7104.

NZD/USD additional levels