NZD/USD technical analysis: Holds just below 200-hour SMA, 0.6300 pivotal point
|- Bulls failed to capitalize on the overnight late bounce from two-week lows.
- Set-up warrants some cautions before placing any aggressive directional bets.
The NZD/USD pair failed to capitalize on the overnight late rebound from two-week lows and seesawed between tepid gains/minor losses through the Asian session on Thursday.
The pair seemed struggling to extend the attempted recovery further beyond 200-hour SMA, around the 0.6300 handle, which should now act as a key pivotal point for intraday traders.
Meanwhile, oscillators on the 1-hourly chart have been gaining positive momentum and have also recovered from the bearish territory on the 4-hourly chart, suggesting some gains.
However, technical indicators on the daily chart have just started drifting into the negative territory and warrant some caution for bullish traders before placing any aggressive bets.
Having said that, the pair is likely to witness some intraday short-covering bounce on a sustained move beyond the 0.6300 handle and move back towards the 0.6330-35 supply zone.
On the flip side, immediate support is now pegged near the 0.6260 region, which if broken might turn the pair vulnerable to slide back towards multi-year lows – near the 0.6200 mark.
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