NZD/USD Price Analysis: Bulls battle 50-DMA on the way to 0.6860
- NZD/USD extends the previous day’s rebound to refresh one-week high.
- Clear break of three-week-old descending trend line, bullish MACD and firmer RSI favor bulls.
- Weekly support line, October 2020 high will challenge bears.
NZD/USD pierces 50-SMA to refresh weekly top around 0.6800 during early Wednesday.
The kiwi pair’s latest run-up could be linked to the sustained break of a descending trend line from November 18. Also favoring the pair buyers are the bullish MACD signals and firmer RSI line, not overbought.
It should be noted, however, that a clear run-up past 50-SMA level of 0.6805 becomes necessary for the NZD/USD prices to aim for a 10-week-old horizontal area surrounding 0.6860-65, a break of which will recall the 0.6900 threshold to the charts.
Should NZD/USD fades upside momentum, the previous resistance line near 0.6785 will precede the recent lows near 0.6735 and the 0.6700 round figure to lure the short-term sellers.
Additionally, the quote’s bearish impulsive past-0.6700, it becomes vulnerable to slump towards the November 2020 lows near 0.6590 will be in focus.
To sum up, NZD/USD rebound need validation before convincing the bulls.
NZD/USD: Four-hour chart
Trend: Further upside 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.
