NZD/USD Price Analysis: Bulls are hopeful to kiss 0.6400 on establishment above 200-EMA
|- NZD/USD has reclaimed a three-month high of 0.6320 amid the improved risk appetite of investors.
- An establishment above the 200-EMA adds to the upside filters.
- The RSI (14) is oscillating in a bullish range of 60.00-80.00, which indicates more upside ahead.
The NZD/USD pair reclaimed its three-month high around 0.6320 in the early Tokyo session. The kiwi asset is enjoying significant liquidity as the Federal Reserve (Fed)’s confirmation of a slowdown in the interest rate hike pace has strengthened the risk appetite theme in the global market. The kiwi asset has resumed its upside journey after a mild correction to 0.6290 and has tested Wednesday’s high.
Meanwhile, the US Dollar Index (DXY) has displayed a steep fall after struggling around 106.00 and is expected to test Wednesday’s low at 105.80 in no time.
On a daily scale, the asset is comfortably established above the 200-period Exponential Moving Average (EMA) at around 0.6200, which indicates that the long-term trend has turned bullish. Also, a bull cross, represented by the 20-and 50-EMAs at 0.5871, indicates a continuation of the upside. Going forward, the ultimate resistance is placed from the August 12 high at 0.6470.
Apart from that, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates that the upside momentum is intact.
For further upside, a decisive move above Thursday’s high at 0.6317 will drive the kiwi asset towards August 1 high at 0.6353, followed by the round-level resistance at 0.6400.
On the contrary, the US Dollar could regain strength if the asset surrenders Monday’s low at 0.6155, which will drag the pair towards the round-level support at 0.6100. A slippage below 0.6100 will expose the kiwi asset for more downside toward July 14 low around 0.6060.
NZD/USD daily chart
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