NZD/USD Price Analysis: Buyers remain defensive near 0.6900

• NZD/USD starts the October series on a lower note on Friday.
• Kiwi closes September month with nearly 4% losses.
• Momentum oscillator hints more pain for the pair if it breaks 0.6900.

NZD/USD edges lower on the last trading day of the week in the initial European trading hours. The pair lacks any follow through action and trades in a close trade band with no meaningful price action. At the time of writing, NZD/USD is trading at 0.6896, down 0.03% 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 touch the September month high at 0.7171 (September 3), but lacked the strength to keep up the upside trend. Having said that, if NZD/USD slides below the session’s low it would go back to meet the previous day’s low of 0.6859.

The Moving Average Convergence Divergence (MACD) indicator pierces below the midline. Any downtick in the MACD could trigger more selling opportunities for the pair to reach the 0.6850 horizontal support level followed by the low made on August 23 at 0.6821.

Alternatively, if price starts moving higher, it could test the 61.8% Fibonacci retracement, which extends from the initially mentioned level at 0.6945. Next, the NZD/USD bulls would attempt to recapture the 50.0% Fibonacci retracement level at 0.6985. The upside trend in the pair could be confirmed if the spot gave a daily close above the psychological 0.7000 mark.

NZD/USD additional levels