- Kiwi bulls look firmer above 23.6% Fibo retracement placed at 0.6286.
- The 20- and 50-period EMAs have displayed a bull cross at 0.6265, which strengthens the antipodean.
- A decisive move by the RSI (14) above 60.00 will confirm an upside momentum.
The NZD/USD pair has turned sideways after a vertical upside move on Wednesday. The asset attracted significant bids to near 0.6200 and advanced firmly and now has turned sideways in a 0.6262-0.6310 range.
On an hourly scale, the asset has surpassed the 23.6% Fibonacci retracement (which is placed from June 3 high at 0.6576 to Tuesday’s low at 0.6196) at 0.6286. The pair is expected to display a consolidation phase going forward, which will turn into a fresh leg of upside momentum. Also, an establishment above 23.6% Fibo retracement warrant a bullish reversal.
The 20- and 50-period Exponential Moving Averages (EMAs) have displayed a bull cross at 0.6265, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) is attempting to cross the 60.00 hurdle, which will infuse an adrenaline rush into the kiwi bulls.
A decisive move above Thursday’s high at 0.6311 will drive the asset towards 38.2% Fibo retracement at 0.6341, followed by June 9 low at 0.6379.
Alternatively, the greenback bulls could regain control if the asset drops below Wednesday’s low at 0.6214, which will drag the asset towards Tuesday’s low at 0.6196. A breach of the latter will expose the major to more downside towards the 26 May 2020 low at 0.6094.
NZD/USD hourly chart
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