NZD/USD Price Analysis: Kiwi buyers flex muscles despite recent inaction below 0.6300
- NZD/USD remains depressed inside immediate triangle formation.
- Golden cross, steady RSI keeps Kiwi pair buyers hopeful.
- Bulls need validation from 0.6310 to retake control.
NZD/USD remains mostly steady around 0.6285-80 as it makes rounds inside a symmetrical triangle formation established since the last Friday.
Even so, the Kiwi pair buyers remain hopeful amid the “golden cross” on the hourly chart. That said, the golden cross is a moving average crossover suggesting further upside of the underlying by the 50-SMA’s piercing of the 200-SMA from below.
Apart from the “golden cross”, a steady RSI (14) line also underpins the continuation of a slower grind toward the north.
However, the NZD/USD buyers need to cross the stated triangle’s upper line, around 0.6300 by the press time, for confirmation.
It’s worth noting that the 61.8% Fibonacci retracement level of its May 11-12 downturn, near 0.6310, may act as the final defense of the Kiwi pair sellers before directing the quote towards the monthly high surrounding 0.6385.
On the contrary, a downside break of the stated triangle’s bottom line, close to 0.6275 at the latest, isn’t an open invitation to the NZD/USD bears as 50-SMA and 200-SMA, respectively near 0.6270 and 0.6260, can prod the downside moves.
Following that, the one-week-old ascending support line, close to 0.6215 at the latest, appears the key to watch for the pair sellers to break before taking control.
NZD/USD: Hourly 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.
