NZD/USD: Bearish bias, testing daily lows

The kiwi is consolidating losses against the US dollar on Monday and continues to retreat from 0.6966 (Thursday high). NZD/USD bottomed during the American session at 0.6837.

Currently, it trades at 0.6850, 0.80% down for the day. It is the third decline in a row and from last week highs, it has fallen 125 pips.

NZD/USD: Key level

The area around 0.6833/37 that capped the decline today has become a relevant short-term support; a break lower would open the doors for a continuation in the bearish correction. The next support levels might lie at 0.6775 (Feb 26 high / March 11 & 23 high) and 0.6715/20 (Mar 22 low / Mar 24 & 25 high).

On the opposite direction, the key dynamic resistance could be seen at 0.6875 (downtrend line from March highs); above the kiwi is likely to gain momentum. Resistance on top might lie at 0.6935/40 (Apr 1 high) and 0.6965/67 (Mar 30 & 31 high).