NZD/USD Price Analysis: Pullback seems over at 20-EMA, needs establishment above 200-EMA
|- The kiwi bulls are strengthened on finding bids at the 20-EMA.
- A balancing mode above the 200-EMA and 38.2% Fibo retracement will expose the asset for more upside.
- The RSI (14) is expected to display a range shift from 40.00-60.00 to 60.00-80.00.
The NZD/USD pair has attracted some bids around 0.6327 after a corrective move from Thursday’s high at 0.6395. On a broader note, the kiwi bulls have displayed a power-back buying action from a low of 0.6196 recorded on Wednesday.
The availability of bids around the 20-period Exponential Moving Average (EMA) at 0.6333 signals an initiative buying structure. The asset is attempting to establish above the 200-EMA at 0.6344, which will bring a positive imbalance move in the major. Also, the kiwi bulls are defending the 38.2% Fibo retracement (which is placed between June’s high and low at 0.6576 and 0.6196 respectively) at 0.6342.
The Relative Strength Index (RSI) (14) is displaying some range shift signals from a 40.00-60.00 range to a bullish range of 60.00-80.00, which will strengthen the antipodean further.
For confirmation of an upside move, the kiwi bulls need to drive the asset above Friday’s high at 0.6362. This will send the major towards Thursday’s high at 0.6395, followed by 61.8% Fibo retracement at 0.6430.
On the flip side, a slippage below Wednesday’s high at 0.6313 will support the greenback bulls for a downside move towards Thursday’s low and June’s low at 0.6233 and 0.6196 respectively.
NZD/USD hourly chart
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