- NZD / USD sires take a break near a three-month high with a high of 0.6432 after the Chinese PMI Caixin Services.
- RSI overbought conditions, the main issue for March still on the rise.
- SMA at 200 days, 61.8% Fibonacci retracement can challenge short-term sellers.
The NZD / USD retreats from the March peak at 0.6415 but remains up 0.77% on a day, even after Caixin Services’ PMI in China rose in May. Data released Wednesday morning suggests an increase to 55.00 from 50.3 previous readings.
Read: China Caixin Services PMI for May returns to growth, the highest since the end of 2010 55.0 against 44.4 in April
In addition to the data, the RSI overbought conditions and the proximity of the March peak, around 0.6450, increase the chances of the pair’s withdrawal movements.
In doing so, a 200-day SMA level of 0.6315 and a Fibonacci retracement level of 61.8% of the pair’s decline from December 31, 2019 to March 19, 2020, at 0.6265, will be on sellers’ radars. .
If the price slipped below 0.6265 on a daily closing basis, 0.6230 and the April high near 0.6175 could return to the charts.
Alternatively, an upward release of 0.6450 will allow bulls to challenge the February high near 0.6500.
NZD / USD daily chart
Trend: expected decline