NZD/USD Price Analysis: Finds interest at 0.5540-0.5580 demand zone
- Kiwi bulls have firmed up on a better risk profile after picking bids around the 0.5540-0.5584 demand range.
- Declining 20-and 50-EMAs still favor the downside bias.
- The RSI (14) has defended the downside after picking demand at 40.00.
The NZD/USD pair has bounced back sharply after sensing fresh demand from around 0.5560 in the Tokyo session. An emergence of risk-on impulse in the markets after a volatile Friday has strengthened the risk-perceived currencies.
On a four-hour scale, the kiwi bulls have picked bids after sensing buying interest in the demand zone placed in a 0.5540-0.5584 range. This could be termed as a bullish reversal as the concept requires more filters for confirmation.
The 20-and 50-period Exponential Moving Averages (EMAs) at 0.5603 and 0.5630 respectively are declining, which signals more downside ahead.
While, the Relative Strength Index (RSI) (14) has sensed support at 40.00, which indicates that the kiwi bulls are not bearish now.
Should the asset oversteps the horizontal resistance plotted from October 6 high at 0.5814, which will drive the asset towards September 29 high at 0.5911, followed by the psychological resistance at 0.6000.
Alternatively, the greenback bulls will regain strength if the asset surrenders the two-year low at 0.5536, which will drag the asset toward March 2020 low at 0.5469. A slippage below the latter will expose the asset to the round-level cushion at 0.5400.
NZD/USD four-hour chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
