NZD/USD Price Analysis: Kiwi retreats from key resistance around 0.6150
- NZD/USD snaps two-day uptrend despite bouncing off intraday low of late.
- One-month-old descending resistance line, 200-SMA prod Kiwi pair buyers.
- RSI conditions challenge bulls but immediate support line, 100-SMA restrict intraday fall.
NZD/USD picks up bids to consolidate intraday losses, the first in three days, as it rises to 0.6135 during early Monday. That said, the Kiwi pair reversed from a one-month-old descending resistance line to begin the key week comprising New Zealand growth numbers, the Federal Open Market Committee (FOMC) monetary policy decision and the US inflation.
Apart from a downward-sloping resistance line from May 11, close to 0.6135 by the press time, the overbought RSI (14) line also challenges the NZD/USD buyers.
It should be noted that the Kiwi pair’s upside past 0.6135 needs validation from the 200-SMA hurdle of around 0.6175 to convince the bulls. Following that, highs marked during late May, around 0.6305, will be in the spotlight.
On the flip side, an upward-sloping support line from the last Wednesday, near 0.6120 by the press time, limits the adjacent fall of the NZD/USD pair. Also acting as a downside filter is the 100-bar SMA, close to 0.6100 at the latest.
In a case where the Kiwi pair drops below 0.6100, an ascending trend line from May 31, near 0.6040 as we write, will act as the last defense of the bears.
Overall, NZD/USD teases buyers as the key week begins, despite witnessing multiple hurdles toward the north.
NZD/USD: Four-hour chart
Trend: Pullback 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.
