NZD/USD Price Analysis: Keeps Fed-inspired bounce off fortnight-long support above 0.6200
- NZD/USD prints mild gains after bouncing off two-week-old ascending support line.
- Bullish MACD signals, steady RSI (14) joins sustained trading beyond 200-DMA to favor bulls.
- 100-DMA, 50-DMA restrict short-term upside before mid-February high.
- Bears need validation from 0.6130 before challenging monthly low.
NZD/USD grinds higher past 0.6200, mildly bid near 0.6225 during early Thursday, as it defends the Federal Reserve (Fed) inspired gains despite the latest pullback from the 100-DMA.
In doing so, the Kiwi pair stays firmer above a fortnight-long support line, as well as the 200-DMA. Adding strength to the upside bias could be the bullish MACD signals and the firmer RSI (14).
As a result, the NZD/USD price is likely to mark another attempt in crossing the 100-DMA hurdle of 0.6280, which in turn will highlight the 50-DMA resistance surrounding the 0.6300 threshold for the Kiwi pair buyers.
In a case where the quote remains firmer past 0.6300, the odds of its run-up towards challenging the mid-February high of near 0.6390 and then to the 0.6400 round figure can’t be ruled out.
Alternatively, NZD/USD pullback remains elusive unless the quote stays beyond the aforementioned immediate support line, close to 0.6200 by the press time.
Following that, the 200-DMA level of 0.6158 and the 0.6130 level may act as the last defenses of the buyers before directing the quote toward the monthly low of 0.6084.
Overall, NZD/USD is likely to grind higher but the road toward the north appears bumpy.
NZD/USD: Daily chart
Trend: Further recovery 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.
