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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	0.646
Today Daily Change	0.0074
Today Daily Change %	1.16%
Today daily open	0.6386

Trends
Daily SMA20	0.6261
Daily SMA50	0.5967
Daily SMA100	0.6035
Daily SMA200	0.6278

Levels
Previous Daily High	0.6423
Previous Daily Low	0.6365
Previous Weekly High	0.6444
Previous Weekly Low	0.6302
Previous Monthly High	0.6314
Previous Monthly Low	0.5741
Daily Fibonacci 38.2%	0.6387
Daily Fibonacci 61.8%	0.6401
Daily Pivot Point S1	0.636
Daily Pivot Point S2	0.6334
Daily Pivot Point S3	0.6303
Daily Pivot Point R1	0.6418
Daily Pivot Point R2	0.6449
Daily Pivot Point R3	0.6475

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.

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