NZD/USD Price Analysis: Further recovery hinges on 0.6230-35 breakout
- NZD/USD recovers from three-week-old horizontal support area to snap two-day downtrend.
- Oversold RSI (14) line favors corrective bounce but convergence of 200-SMA, 50% Fibonacci retracement guards immediate upside.
- Multiple hurdles toward the north, bearish MACD signals prod Kiwi pair buyers.
NZD/USD pares the biggest weekly gain since late January as it picks up bids to refresh its intraday high near 0.6220 heading into Monday’s European session. In doing so, the Kiwi pair takes a U-turn from three-week-long horizontal support, amid an oversold RSI (14) line, to print the first daily run-up in three.
That said, the quote’s latest rebound pushes back the NZD/USD prices above the 61.8% Fibonacci retracement of its March-April upside.
However, a convergence of the 200-SMA and 50% Fibonacci retracement, near 0.6230-35, guards the NZD/USD pair’s immediate upside.
Following that, a quick run-up towards the 38.2% Fibonacci retracement level of near 0.6270 can’t be ruled out. Though, the 0.6300 and mid-April high of around 0.6315 could challenge the Kiwi pair’s further advances before directing the bulls towards the yearly top marked the last month around 0.6385.
On the other hand, a daily closing below the aforementioned horizontal support comprising levels marked since April 25, around 0.6190, could recall the NZD/USD bears targeting the monthly low of 0.6110.
Though, multiple levels marked near the 0.6100 round figure and the yearly low marked in March around 0.6085 could challenge the Kiwi pair sellers afterward.
NZD/USD: Four-hour chart
Trend: Limited 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.
