NZD/USD Price Analysis: Bears keep reins within rising wedge, 0.6190 in the spotlight
- NZD/USD extends the previous day’s pullback from one-month high inside rising wedge bearish chart pattern.
- Convergence of 100-SMA, wedge’s support and 23.6% Fibonacci retracement highlights 0.6190 level.
- Bearish MACD signals, failure to cross descending resistance from late February keep Kiwi pair sellers hopeful.
NZD/USD sellers attack a 0.6200 round figure during a two-day downbeat after refreshing the monthly top. Even so, the Kiwi pair stays within a fortnight-old rising wedge bearish chart pattern during early Tuesday in Europe.
Not only the rising wedge but the bearish MACD signals and repeated failures to cross an upward-sloping resistance line from February 20 also keep NZD/USD sellers hopeful.
However, the 100-SMA joins the stated wedge’s lower line and 23.6% Fibonacci retracement of the pair’s February-March fall to highlight 0.6190 as a tough nut to crack for the bears.
In a case where the quote successfully breaks the 0.6190 support confluence, the odds of witnessing a slump toward the theoretical target surrounding the 0.6000 psychological magnet can’t be ruled out.
During the anticipated fall, the 0.6100 threshold and the monthly low of 0.6084 can act as buffers.
Meanwhile, recovery moves may initially aim for the 38.2% Fibonacci retracement level of 0.6257 before challenging the aforementioned monthly resistance line, near 0.6275 by the press time.
Even so, the NZD/USD pair sellers remain hopeful unless the quote stays below the aforementioned wedge’s top line, close to 0.6300 as we write.
Overall, NZD/USD remains on the bear’s radar but the pair’s further downside hinges on a 0.6190 breakdown.
NZD/USD: Four-hour chart
Trend: Further downside expected
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.
