NZD/USD Price Analysis: Bulls flex muscles to combat key hurdles below 0.6300
- NZD/USD grinds higher at weekly top, extends the previous day’s rebound.
- Upbeat RSI, bullish MACD signals keep buyers hopeful.
- Six-week-old descending resistance line, key DMAs challenge Kiwi pair buyers.
- Downside break of three-week-long ascending support line can recall bears.
NZD/USD prints mild gains around 0.6260 during early Wednesday in Europe as bulls take a breather following the previous day’s run-up, the biggest in over a week. In doing so, the Kiwi pair fades upside momentum below the key resistances while defending a two-day run-up.
That said, the quote’s sustained U-turn from a three-week-old ascending support line joins bullish MACD signals to keep buyers. Adding strength to the upside hopes is the steady RSI (14).
However, the downward-sloping resistance line from mid-February, close to 0.6280 at the latest, restricts the immediate upside of the NZD/USD pair.
Following that, a convergence of the 50-DMA and 100-DMA challenges the Kiwi pair buyers around 0.6285-95.
It’s worth noting that the 0.6300 round figure acts as an extra filter towards the north, a break of which won’t hesitate to challenge the mid-February high surrounding 0.6390.
Meanwhile, pullback moves need validation from the aforementioned immediate support line, close to 0.6195 by the press time.
In a case where NZD/USD remains bearish past 0.6195, multiple lows marked since late November 2022, around 0.6090-80, may gain the market’s attention.
Overall, NZD/USD is likely to remain firmer but the upside momentum remains less convincing below 0.6300.
NZD/USD: Daily chart
Trend: Limited 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.
