NZD/USD Price Analysis: Multiple hurdles prod Kiwi bulls, focus on 200-SMA, China inflation
- NZD/USD approaches short-term key hurdle after rising the most in two months the previous day.
- 12-day-old horizontal resistance zone, descending trend line from early May challenge Kiwi bulls before 200-SMA.
- Sellers may wait for weekly support break for fresh entry.
- China’s CPI, PPI for May can join upbeat RSI to favor bulls ahead of next week’s Fed meeting.
NZD/USD bulls are yet to retake control, despite the most in two months the previous day, as multiple key upside hurdles stand tall to challenge the latest advances ahead of the key China inflation data on early Friday. With this, the Kiwi pair dribbles around 0.6100 by the press time.
It should be noted that the quote’s sustained trading beyond the one-week-old ascending support line and upbeat RSI (14) line, not overbought, keeps the buyers hopeful.
However, a fortnight-long horizontal resistance area, which also comprises the 100-SMA hurdle, restricts the immediate upside of the NZD/USD pair around 0.6110-15.
Following that, a one-month-old descending trend line, close to 0.6135 by the press time, could challenge the Kiwi buyers ahead of directing them to the 200-SMA resistance of around 0.6180 at the latest.
In a case where the NZD/USD remains firmer past 0.6180, the odds of witnessing a rally beyond 0.6200 can’t be ruled out.
On the contrary, the aforementioned one-week-old rising trend line, near 0.6050 at the latest, restricts the immediate downside of the NZD/USD pair.
Even if the pair breaks the 0.6050 support, an area comprising multiple levels marked since May 26, surrounding .6025-30, can act as the last defense of the NZD/USD bulls.
Overall, the NZD/USD bulls are up for retaking control but they need validation from the 200-SMA and China’s inflation gauges for May, namely the Consumer Price Index (CPI) and Producer Price Index (PPI).
NZD/USD: Four-hour chart
Trend: Further upside 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.
