NZD/USD Price Analysis: Kiwi approaching resistance at 0.6685

NZD/USD's rebound from 0.6550 extends to 0.6680 area.
The kiwi approaches the top of the last two weeks' trading range, at 0.6685.

Guillermo Alcala FXStreet

The New Zealand dollar has bounced up strongly after hitting two-week lows at 0.6550 on Tuesday. The pair has rallied more than 1.2% on the day to erase previous losses and approach an important resistance area at 0.6685.

The daily chart shows the pair approaching the top the last four weeks horizontal channel, at the mentioned 0.65685. Above here, the path seems clear to extend towards 18-month high at 0.6795. If the pair manages to break that level, next potential resistance might be April 2019 highs at 0.6840.

On the flip side, a reversal from current levels might find support at the 100-day SMA, now at 0.6585 before testing the channel bottom at 0.6550. Once below here, next support level would be 0.6490 which, if broken, might activate an “H&S” pattern, sending the pair to 0.6200 or lower.

NZD/USD daily chart

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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