Technical Analysis: NZDUSD bears rejected around 0.7000 key support

NZDUSD refreshed monthly low, before bouncing off 50-DMA during the four-day downtrend. Not only the short-term moving average but 38.2% Fibonacci retracement of the May-August decline also challenges the pair sellers around the 0.7000 threshold. Should the quote drops below the 0.7000 mark, 23.6% Fibonacci retracement level of 0.6920 and July lows near 0.6880 can entertain the bears before directing them to the yearly low of 0.6804.

On the contrary, recovery moves need to get validation from September 08 lows near 0.7075. Following that, 61.8% Fibonacci retracement and monthly top, respectively around 0.7120 and 0.7170, should lure the NZDUSD buyers. In a case where the pair bulls keep the controls beyond 0.7170, the 0.7230 and the May monthly peak surrounding 0.7315 should return to the chart. Overall, the kiwi pair braces for corrective pullback amid a short-term downtrend.

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