NZD/USD Price Analysis: Looks set to challenge 0.6400 hurdle
- NZD/USD retreats from intraday high, consolidates recent losses around yearly low.
- Firmer oscillators, sustained trading above short-term key support lines keep buyers hopeful.
- 200-SMA, monthly peak challenge upside momentum, bears need validation from 0.6280.
NZD/USD stays mildly bid above 0.6300 as it consolidates recent losses around 0.6325 heading into Monday’s European session.
In doing so, the Kiwi pair justifies an upside break of the monthly resistance line, as well as sustained trading above the weekly ascending trend line.
Also keeping buyers hopeful are the bullish MACD signals and an upbeat RSI line that backs the NZD/USD rebound from the yearly low.
However, the latest swing high and the 200-SMA together offer an important hurdle to the north around 0.6400.
Following that, the 61.8% Fibonacci retracement of June 03-14 downside, near 0.6435, could act as a validation point for the rally targeting the monthly peak of 0.6575.
On the flip side, the immediate support line, as well as the previous resistance line, challenge short-term NZD/USD downside around 0.6290 and 0.6280 respectively.
Should the quote drops below 0.6280, the yearly low around 0.6200 and April 2020 peak near 0.6175 might restrict the further declines.
Overall, NZD/USD remains on the bear’s radar even as short-term recovery remains widely anticipated.
NZD/USD: Four-hour 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.
