NZD/USD Price Analysis: Extends RBNZ-led rally towards 200-DMA, jumps the most since April
- NZD/USD registers the strongest daily gains in three months.
- Sustained break of monthly trend line, 21-DMA becomes necessary for the bulls.
- Sellers will wait for a daily closing below 0.6920.
NZD/USD buyers keep reins around 0.7015, up 1.05% intraday, amid the early Wednesday, posting the biggest intraday run-up since April 14.
The kiwi pair crossed immediate hurdles, namely the 21-DMA and a descending trend line from mid-June, following the Reserve Bank of New Zealand’s (RBNZ) hawkish tilt earlier in Asia.
Bullish MACD signals back the breakout but a daily closing beyond 0.7005 will be needed for the NZD/USD buyers to mark another battle with the key 200-DMA hurdle around 0.7075.
If at all the quote crosses the 0.7075 DMA resistance, the monthly high around 0.7105 should quickly return to the charts.
Meanwhile, any failures to print a +0.7000 closing may tease sellers targeting the recent lows around 0.6920.
It should, however, be noted that the quote’s sustained weakness past 0.6920 will make it vulnerable to revisit September 2020 high surrounding the 0.6800 threshold.
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.
