NZD/USD Price Analysis: fades bounce off 21-DMA below 0.6300
|- NZD/USD struggles to defend buyers inside monthly rising wedge bears formation.
- Steady RSI, receding bullish bias of MACD tease sellers.
- Previous resistance line from April adds to the downside filters.
- Bulls have a bumpy road to the north unless crossing 0.6565 hurdle.
NZD/USD retreats towards 0.6250, fading the bounce off 21-DMA inside a one-month-old rising wedge bearish pattern amid Thursday’s initial Asian session.
In addition to the latest failures to defend buyers, the steady RSI (14) and the receding bullish bias of the MACD also teases the NZD/USD sellers.
However, a clear downside break of the aforementioned rising wedge’s support line, at 0.6245 by the press time, appears necessary for the bears.
Even so, the 21-DMA and the resistance-turned-support line from April, respectively around 0.6215 and 0.6100, could challenge the NZD/USD downside momentum before highlighting the yearly low marked in July at around 0.6060.
Alternatively, recovery moves may aim for the 0.6300 round figure ahead of the stated wedge’s upper line, close to 0.6380 at the latest.
Following that, highs marked in mid-June and a two-month-old horizontal resistance line, near 0.6400 and 0.6570 in that order, will be crucial hurdles to watch.
To sum up, NZD/USD buyers have limited upside room while the sellers can easily retake control.
NZD/USD: Daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.