NZD/USD Price Analysis: Fades bounce off 100-SMA below 0.6340 resistance
- NZD/USD struggles to extend the previous day’s run-up below two-month-old resistance line.
- RSI hints at limited upside room, two-week-old ascending trend line adds to the downside filters.
- Multiple supports below 0.6200 signal bumpy road for bears.
NZD/USD bulls take a breather, after snapping a two-day downtrend, as the quote seesaws around the 0.6300 threshold during Friday’s Asian session.
In doing so, the Kiwi pair fades bounce off 100-SMA and an 11-day-long support line. The pullback also takes place ahead of the resistance line stretched from June 2022.
It’s worth observing that the lower highs of the RSI (14) also invalidate the previous recovery and hence keeping NZD/USD sellers hopeful.
With this in mind, the intraday bears can aim for the 38.2% Fibonacci retracement of the June-July downside, near 0.6260.
However, the 100-SMA and the aforementioned support line, respectively around 0.6240 and 0.6215, could challenge the NZD/USD sellers afterward.
In a case where the quote drops below 0.6215, the 0.6200 and multiple supports beyond 0.6100 could challenge the further downside.
Alternatively, recovery moves may initially attack the 50% Fibonacci retracement level of 0.6320 before poking the downward sloping resistance line from June, close to 0.6335 by the press time.
In a case where the NZD/USD prices rally beyond 0.6335, the mid-June swing high near 0.6395 and the 0.6400 could lure the bulls.
NZD/USD: Four-hour chart
Trend: Pullback 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.
