- NZD/USD struggles to defend buyers inside monthly rising wedge bears formation.
- Steady RSI, receding bullish bias of MACD tease sellers.
- Previous resistance line from April adds to the downside filters.
- Bulls have a bumpy road to the north unless crossing 0.6565 hurdle.
NZD/USD retreats towards 0.6250, fading the bounce off 21-DMA inside a one-month-old rising wedge bearish pattern amid Thursday’s initial Asian session.
In addition to the latest failures to defend buyers, the steady RSI (14) and the receding bullish bias of the MACD also teases the NZD/USD sellers.
However, a clear downside break of the aforementioned rising wedge’s support line, at 0.6245 by the press time, appears necessary for the bears.
Even so, the 21-DMA and the resistance-turned-support line from April, respectively around 0.6215 and 0.6100, could challenge the NZD/USD downside momentum before highlighting the yearly low marked in July at around 0.6060.
Alternatively, recovery moves may aim for the 0.6300 round figure ahead of the stated wedge’s upper line, close to 0.6380 at the latest.
Following that, highs marked in mid-June and a two-month-old horizontal resistance line, near 0.6400 and 0.6570 in that order, will be crucial hurdles to watch.
To sum up, NZD/USD buyers have limited upside room while the sellers can easily retake control.
NZD/USD: Daily chart
Trend: Pullback expected
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