NZDUSD recently fell through support at the rising trend line on the 4-hour time frame and is retesting this level. If it keeps holding as resistance, the pair could slide back to the downside targets marked by the Fibonacci extension tool.

The 38.2% level lines up with the swing low at the .7106 mark then the 50% level is at .7063. Stronger selling pressure could take NZDUSD down to the 61.8% Fib at .7019 or the 76.4% level at .6966. The full extension is at .6879 near the .6900 major psychological support.

Stochastic already reached the overbought zone and looks ready to move south, so price could follow suit as bearish pressure picks up. RSI has some room to climb, though, so there could still be some bullish pressure left.

The 100 SMA is also above the 200 SMA to indicate that the path of least resistance is to the upside or that there’s a chance for the climb to resume. Price is trading below both moving averages, though, so these indicators could hold as dynamic resistance levels.

There are no major reports due from New Zealand for the rest of the trading day, so price action could hinge on market sentiment. A return in risk aversion could bring some downside for this higher-yielding currency and favor the safe-haven US dollar instead.

Meanwhile, the dollar is drawing some support from the approval of the House for Biden’s stimulus plan. This could bring in a lot of support for the US economy in the near-term, as the aid is geared towards helping businesses and consumers.

Then again, this could be overall risk-positive as it would also translate to potentially stronger performance for the global economy as demand picks up. In turn, this could bring gains for the commodity-related Kiwi while US consumers and businesses ramp up purchases.