NZD/USD Price Analysis: 0.6790-95 hurdle challenges further upside

NZD/USD extends bounce off weekly low to rise the most among G10 currency pairs.
200-SMA, one-week-old descending trend line restricts short-term upside.
Bears need validation from monthly upward sloping support line.
RSI rebound, easing bearish bias of MACD adds strength to the recovery hopes.

Anil Panchal FXStreet

NZD/USD pokes the short-term key resistance while grinding higher around 0.6790 heading into Wednesday’s European session.

The Kiwi pair carries the previous day’s bounce off a one-month-old ascending trend line to lead the G10 currency pair gainers, up 0.32% intraday at the latest.

However, a convergence of the 200-SMA and a one-week-long descending trend line, around 0.6790-95, become the short-term key hurdles to test NZD/USD rebound.

In a case where NZD/USD bulls cross 0.6810, a run-up towards the two-month-old horizontal area surrounding 0.6890-95 will gain the market’s attention.

Meanwhile, NZD/USD pair’s further declines hinge on the clear break of an upward sloping support line from December 20, near 0.6750.

Following that, a slump to the year 2021 trough surrounding 0.6700 will be imminent while the 61.8% Fibonacci Expansion (FE) of the pair’s moves between November 15 and December 24, near 0.6650, will be in focus afterward.

NZD/USD: Four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	0.6788
Today Daily Change	0.0022
Today Daily Change %	0.33%
Today daily open	0.6766

Trends
Daily SMA20	0.6807
Daily SMA50	0.684
Daily SMA100	0.6954
Daily SMA200	0.702

Levels
Previous Daily High	0.6827
Previous Daily Low	0.6752
Previous Weekly High	0.6891
Previous Weekly Low	0.6736
Previous Monthly High	0.6891
Previous Monthly Low	0.6701
Daily Fibonacci 38.2%	0.6781
Daily Fibonacci 61.8%	0.6798
Daily Pivot Point S1	0.6737
Daily Pivot Point S2	0.6707
Daily Pivot Point S3	0.6662
Daily Pivot Point R1	0.6811
Daily Pivot Point R2	0.6856
Daily Pivot Point R3	0.6886

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.