NZD/USD Price Analysis: Bulls run out of steam as key EMAs test upside near 0.6250
- NZD/USD struggles to extend three-day uptrend near the highest levels in a fortnight.
- 100, 200 EMAs restrict immediate upside even as trend line breakout, bullish MACD signals favor buyers.
- The four-month-old horizontal area is the key downside support.
NZD/USD seesaws around 0.6235-30 during the early Wednesday morning in Asia-Pacific as bulls jostle with the key Exponential Moving Averages (EMA) to extend the three-day uptrend.
It should be noted, however, that the Kiwi pair’s latest run-up could be linked to a clear U-turn from the four-month-old horizontal support zone, around 0.6090-80, as well as clear upside break of the downward-sloping resistance line, now immediate support close to 0.6175.
Apart from the aforementioned catalysts, the bullish MACD signals also favor the NZD/USD upside.
However, the 100-day EMA precedes the 200-day EMA to restrict the immediate upside of the Kiwi pair near 0.6240 and 0.6265 in that order.
Should the quote manages to remain firmer past 0.6265, the odds of witnessing a quick run-up toward the 0.6300 threshold appear bright.
Following that, the mid-February swing high, close to 0.6390, holds the key to the NZD/USD bull’s further dominance towards poking February’s high near 0.6540.
Alternatively, a downside break of the resistance-turned-support near 0.6175 could lure the NZD/USD bears. Though, a sustained break of the horizontal area comprising multiple lows marked since November, near 0. 6090-80, will be necessary to push back the buyers.
Overall, NZD/USD is likely to rise further but the EMAs hold the gate for bulls.
NZD/USD: Daily 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.
