NZD/USD Price Analysis: Drops back towards 200-EMA around 0.6250, buyers stay hopeful
- NZD/USD remains depressed around intraday low as it snaps two-day winning streak.
- Bullish MACD signals, 200-EMA and nearby rising trend line keeps buyers hopeful unless breaking 0.6180 support.
- One-month-old ascending resistance line challenges Kiwi pair’s immediate upside.
NZD/USD prints the first daily loss in three as bears flirt with the 0.6250 level heading into Monday’s European session. In doing so, the Kiwi pair reverses from an upward-sloping resistance line from late February while dropping toward the 200-bar Exponential Moving Average (EMA).
Even if the one-month-long ascending trend line resistance challenges NZD/USD bulls near 0.6285, the pair’s sustained trading beyond the key EMA joins the bullish MACD signals to keep buyers hopeful.
That said, a one-week-old upward-sloping support line, close to 0.6175 at the latest, also restricts the short-term downside of the NZD/USD pair, in addition to the 200-EMA level surrounding 0.6240.
In a case where the Kiwi pair drops below 0.6175, the odds of witnessing a slump toward the monthly low near 0.6085 can’t be ruled out.
On the flip side, a clear upside break of the stated resistance line, near 0.6285 at the latest, will need validation from the 0.6300 round figure to propel the quote towards the tops marked during early February near 0.6390.
Following that, a run-up toward the Year-To-Date (YTD) high of nearly 0.6540 can’t be ruled out.
To sum up, NZD/USD remains on the bull’s radar despite the latest failure to cross the short-term resistance line.
NZD/USD: Four-hour 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.
