NZD/USD Price Analysis: Bulls need clear break of 0.6480 to keep the driver’s seat
- NZD/USD struggles for clear directions at six-month high.
- Overbought RSI conditions, four-month-old horizontal resistance challenge bulls.
- Monthly support line, sustained trading beyond 200-DMA restrict bear’s entry.
NZD/USD remains sidelined around 0.6460 during Wednesday’s Asian session, after retreating from a six-month high before a few hours.
The quote rallied to the highest levels since June the previous day, and also posted the biggest daily gains in a fortnight, but failed to offer a daily closing beyond the key 0.6480 hurdle comprising tops marked in August, as well as during early December.
The pullback move also took clues from the overbought RSI conditions, suggesting further profit-booking on the road.
Though, an upward-sloping support line from early November, close to 0.6415 by the press time, puts a floor under the NZD/USD prices.
In a case where the Kiwi pair drops below 0.6415 support, a slump towards the November 29 peak of 0.6290 and then to the 200-DMA support of 0.6213 can’t be ruled out. However, a two-month-old ascending support line near 0.6190 could defend the bulls afterward.
On the flip side, a successful break of 0.6480 could propel the NZD/USD prices toward the tops marked in May and June, around 0.6568-75. Following that, a run-up towards March’s low near 0.6730 becomes more likely.
Overall, NZD/USD bulls stay in the driver’s seat but the pair’s further upside hinges on the 0.6480 breakout.
NZD/USD: Daily chart
Trend: Pullback 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.
