NZD/USD Price Analysis: Off 0.7188 support confluence but not out of the woods
- NZD/USD extends corrective pullback from intraday low, keeps a bearish chart pattern intact.
- 200-HMA adds strength to the key short-term support.
- Channel breakout will target the monthly top, bears can look for weekly low on the break of 0.7188.
NZD/USD trims intraday losses while picking bids to 0.7200, down 0.10% on a day, during the early Wednesday. In doing so, the kiwi pair justifies its bounce-off 200-HMA and the support line of an immediate falling trend channel.
However, the recovery mover doesn’t comply with the bearish MACD signals and hence buyers are likely to remain cautious until witnessing a break of 0.7215.
Following that, the monthly high near 0.7245 and late March’s peak surrounding 0.7270 can entertain the NZD/USD buyers ahead of the 0.7300 threshold.
On the contrary, a downside break of the 0.7188 support confluence will quickly drag the quote to a one-week low of 0.7145.
During the quote’s further weakness past-0.7145, 0.7120 and multiple lows marked since January 18 around 0.7100 round-figure will be the key to watch.
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.
