• The greenback bulls surrendered their control after the RSI (14) indicated signs of exhaustion.
  • Kiwi bulls are firmer above 20-EMA and are expected to tap the 200-EMA.
  • The trendline placed from 0.6805 will act as a major barricade.

The NZD/USD pair is gently moving higher in the Asian session. The pair is expected to extend gains as it has overstepped Monday’s high at 0.6320. Kiwi bulls are dominating the greenback for the last two trading sessions after the major found a firmer rebound from Friday’s low at 0.6217.

On an hourly scale, kiwi bulls look firmer above the 20-period Exponential Moving Average (EMA) at 0.6294. The kiwi bulls are expected to tap the 200-EMA at 0.6333. The trendline placed from April 21 high at 0.6805 will act as a major barricade for the counter.

A rebound in the asset was witnessed after the formation of a Bullish Divergence on the asset. The asset formed a lower low on a continuous basis while the momentum oscillator, Relative Strength Index (RSI) (14) made a higher low, which indicates signs of exhaustion in the downtrend.

Also, the RSI (14) has shifted into a bullish range of 60.00-80.00, which indicates a firmer rally going forward.

A minor pullback towards the 20-EMA at 0.6294 will be a bargain buy for the market participants. This may drive the asset higher towards the trendline at 0.6330 followed by the round level resistance at 0.6400.

Alternatively, the greenback bulls could regain control if the asset drops below Friday’s low at 0.6225.  This will drag the asset towards the 13 May 2020 high of 0.6098. A slippage below the 13 May 2020 high will expose the asset to a low to near the psychological support of 0.6000.

NZD/USD hourly chart

NZD/USD

Overview
Today last price 0.6317
Today Daily Change 0.0009
Today Daily Change % 0.14
Today daily open 0.6308
 
Trends
Daily SMA20 0.648
Daily SMA50 0.6717
Daily SMA100 0.6723
Daily SMA200 0.6852
 
Levels
Previous Daily High 0.6331
Previous Daily Low 0.6229
Previous Weekly High 0.6414
Previous Weekly Low 0.6217
Previous Monthly High 0.7035
Previous Monthly Low 0.6451
Daily Fibonacci 38.2% 0.6292
Daily Fibonacci 61.8% 0.6268
Daily Pivot Point S1 0.6247
Daily Pivot Point S2 0.6187
Daily Pivot Point S3 0.6145
Daily Pivot Point R1 0.635
Daily Pivot Point R2 0.6392
Daily Pivot Point R3 0.6453

 

 

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