NZD/USD Price Analysis: Dribbles inside weekly triangle below 0.6400
- NZD/USD remains sidelined inside a short-term symmetrical triangle formation.
- Sustained trading beyond the key HMAs, steady RSI favor buyers.
- Sellers need to break 0.6190 to dominate further.
NZD/USD makes rounds to 0.6370-75 during early Wednesday, after snapping a two-day uptrend near a monthly top the previous day. In doing so, the Kiwi pair remains inside a symmetrical triangle formation connecting multiple levels marked since Monday.
Not only the immediate triangle but the steady RSI (14) also portrays the Kiwi pair’s latest inaction.
However, the quote’s successful trading above the 100 and 200 Hourly Moving Averages (HMAs) join the above 50 level of RSI to keep the NZD/USD buyers hopeful.
That said, a clear upside break of the stated triangle’s top line, close to 0.6385 by the press time, appears necessary for the bulls to take control.
Even so, the 0.6400 round figure and the recent high surrounding 0.6410 could act as additional upside filters to challenge the buyers before directing them to the previous monthly high near 0.6515. During the run-up, the 0.6500 threshold may act as a buffer.
On the flip side, a downside break of the triangle’s support line, around 0.6345 at the latest, won’t flash a strong bearish signal for the NZD/USD traders as a convergence of the 100 and 200 HMA could restrict the pair’s further downside near 0.6320-15.
Even if the pair drops below 0.6315, the monthly low near 0.6190 may act as the last defense of the NZD/USD buyers.
NZD/USD: Hourly 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.
