NZD/USD Price Analysis: On its way to print inverse head-and-shoulders
- NZD/USD stays pressured near 0.6650 while keeping range from Tuesday’s US session.
- A bullish chart formation is gradually gaining momentum but 0.6700 becomes the key.
- 200-hour EMA acts as the near-term strong support.
NZD/USD weakens to 0.6655 amid the initial trading session on Wednesday. The quote recently dropped to the intraday low of 0.6646 on downbeat fundamentals from its largest customer Australia. Though, sustained trading beyond near-term key moving average and bullish MACD keeps the buyers hopeful to gain confirmation of a bullish pattern.
While a clear break of 0.6700 could give a free hand to the buyers targeting December 31, 2019 top near 0.6760, 0.6675 acts as an immediate upside barrier for the pair to cross.
It should, however, be noted that the quote’s further rise past-0.6760 will eye for July 2019 peak surrounding 0.6790 ahead of confronting the 0.6800 threshold.
On the contrary, a downside break of a 200-hour EMA level of 0.6630 will challenge July 24 bottom close to 0.6615 and then decline towards 0.6600 round-figure.
In a case where the bears keep the reins past-0.6600, the mid-month peak of 0.6585 and the monthly low close to 0.6440 could regain market attention.
NZD/USD hourly chart
Trend: Bullish
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.
