- NZD/USD struggles to keep RBNZ-led advances near three-week high.
- Overbought RSI, key EMA challenge buyers inside weekly rising channel.
- 0.6410-15 appears a tough nut to crack for bears.
NZD/USD bulls take a breather around the three-week top, paring post-RBNZ gains near the 0.6500 threshold during early Wednesday in Europe.
The Kiwi pair jumped towards the monthly high after the Reserve Bank of New Zealand (RBNZ) unveiled a 0.50% rate hike, matching market forecasts.
Read: RBNZ’s Orr: Confident households can withstand higher rates
However, the 200-EMA around 0.0.6505 seems to restrict the quote’s latest upside amid the overbought RSI conditions.
Also acting as an upside filter is the stated channel’s upper line, surrounding 0.6545, as well as the monthly high of 0.6568.
Alternatively, pullback moves may aim for the mid-0.6400s ahead of confronting the 0.6410-15 support confluence including the aforementioned channel’s lower line, 100-EMA and 23.6% Fibonacci retracement of the April-May downside.
If at all NZD/USD drops below 0.6440, the odds of its south-run towards the monthly low near 0.6215 can’t be ruled out.
To sum up, NZD/USD prices remain in the recovery mode but the recent run-up needs consolidation.
NZD/USD: Four-hour chart
Trend: Pullback expected
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