NZD/USD Price Analysis: Edges higher past 0.6050 within immediate triangle but stays on bear’s radar
- NZD/USD picks up bids within three-day-old descending triangle.
- RSI’s rebound from oversold territory, bullish MACD signals suggest further corrective bounce of the Kiwi pair.
- Buyers to stay skeptical below 0.6250 resistance confluence.
NZD/USD prints mild gains around 0.6050 inside a bullish triangle formation portrayed at the yearly low. In doing so, the Kiwi pair justifies the RSI (14) line’s recovery from the oversold territory, as well as the bullish MACD signals, during early Tuesday.
As a result, the pair buyers may witness the further recovery of the quote towards the stated triangle’s top line, surrounding 0.6070 at the latest, ahead of poking the 0.6100 round figure.
Following that, a convergence of the previous support line stretched from late April and a 13-day-old descending resistance line, around 0.6250 by the press time, will be in the spotlight as it holds the key for the NZD/USD bull’s dominance.
It should be noted that the mid-May swing low around 0.6180-85 can act as an intermediate halt between 0.6100 and 0.6250.
Alternatively, a downside break of the stated triangle’s bottom line of around 0.6040 can quickly fetch the quote towards the 0.6000 psychological magnet.
Should the NZD/USD pair remains weak past the 0.6000 round figure, it becomes vulnerable to testing the early October 2022 peak of 0.5815.
Overall, NZD/USD stays bearish unless breaking the 0.6250 key hurdle.
NZD/USD: Four-hour chart
Trend: Further downside 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.
