NZD/USD Price Analysis: Struggles to extend the bounce off 0.6370 support confluence
|- NZD/USD seesaws around intraday high, remains indecisive on a day.
- Convergence of 50-SMA, one-week-old ascending trend appears a tough nut crack for bears.
- Bulls need validation from 0.6420 to retake control.
NZD/USD takes rounds to 0.6390 during early Tuesday as the Kiwi pair traders await more clues to extend the latest recovery from the key support confluence. In doing so, the quote highlights the market’s cautious mood ahead of the United States inflation numbers for November, namely the Consumer Price Index (CPI).
Although NZD/USD snapped a three-day uptrend the previous day, the bears couldn’t conquer a convergence of the 50-bar Simple Moving Average (SMA) and a one-week-old ascending support line, around 0.6370.
The pair’s rebound, however, battles with the bearish MACD signals to challenge the NZD/USD buyers. Also challenging the Kiwi pair’s upside momentum could be the downward-sloping resistance line from December 05, close to 0.6420 by the press time.
In a case where the NZD/USD remains firmer past 0.6420, the odds of witnessing a run-up to refresh the monthly high surrounding 0.6475-80 can’t be ruled out.
On the flip side, a clear break of the 0.6370 support confluence could quickly fetch the quote towards the previous weekly low near the 0.6300 round figure.
However, the 100-SMA and 61.8% Fibonacci retracement level of the NZD/USD pair’s November 28 to December 01 upside, respectively near 0.6290 and 0.6280, could challenge the bears afterward.
NZD/USD: Four-hour chart
Trend: Limited upside 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.