NZD/USD Price Analysis: 200-SMA checks Kiwi buyers within weekly bullish channel, Fed in focus

NZD/USD retreats from three-week high, stays mildly bid despite the latest fall toward intraday low.
Bullish chart formation, sustained trading beyond 100-SMA and downbeat US inflation keeps Kiwi pair buyers hopeful.
Sellers need validation from 0.6025 and the Fed to retake control.

Anil Panchal FXStreet

NZD/USD pares intraday gains, the fifth in a row, as bulls catch a breather at the highest level in three weeks heading into Wednesday’s European session. In doing so, the Kiwi pare reverses from the 200-SMA as market positions for the US Federal Reserve (Fed) Interest Rate Decision amid escalating hopes of no rate hike after witnessing 10 consecutive lifts in the Fed rates. With this, the quote stays depressed near 0.6155 despite posting mild gains at the latest.

Also read: NZD/USD bulls step in ahead of the Fed

In addition to the failure to cross the 200-bar Simple Moving Average (SMA), the NZD/USD pair’s pullback also takes clues from the overbought RSI (14) line. However, a one-week-old ascending trend channel keeps the Kiwi pair buyers hopeful.

Hence, the quote’s latest weakness can challenge the short-term bullish chart formation by poking the 0.6130 support with eyes on the 100-SMA support surrounding 0.6085.

It’s worth mentioning that multiple levels marked since late May highlights 0.6030-25 as the last defense of the NZD/USD buyers.

On the contrary, the aforementioned 200-SMA restricts immediate upside of the NZD/USD pair near 0.6175.

Following that, the 61.8% Fibonacci retracement level of the pair’s May 19-31 downside, near 0.6185, will precede the previously stated channel’s top line, near 0.6205, to challenge the bulls.

NZD/USD: Four-hour chart

Trend: Bullish

Additional important levels

Overview
Today last price	0.6152
Today Daily Change	0.0003
Today Daily Change %	0.05%
Today daily open	0.6149

Trends
Daily SMA20	0.6115
Daily SMA50	0.6182
Daily SMA100	0.6226
Daily SMA200	0.615

Levels
Previous Daily High	0.6178
Previous Daily Low	0.6106
Previous Weekly High	0.6143
Previous Weekly Low	0.6026
Previous Monthly High	0.6385
Previous Monthly Low	0.5985
Daily Fibonacci 38.2%	0.615
Daily Fibonacci 61.8%	0.6134
Daily Pivot Point S1	0.6111
Daily Pivot Point S2	0.6072
Daily Pivot Point S3	0.6039
Daily Pivot Point R1	0.6183
Daily Pivot Point R2	0.6216
Daily Pivot Point R3	0.6255

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.

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